Given India’s very low Coronavirus death count and relatively very young population, the Gross Domestic Product of India is likely to grow in double digits in 2021, said the global rating agency Moody’s.
“India’s very low coronavirus death count (only about 1,70,179 deaths have been recorded as of April 12) and relatively very young population also help mitigate risks. GDP is still likely to grow in double digits in 2021 given the low level of activity in 2020,” Moody’s Investors Service said.
The rating agency also said India’s focus on micro-containment zones to deal with the current wave of infections, instead of a nationwide lockdown will also help mitigate the risks. “Therefore, the impact on economic activity will be less severe than that seen in 2020,” it added.
However, the second wave of infections presents a risk to growth forecast as the reimposition of virus management measures will curb economic activity and could dampen market and consumer sentiment, Moody’s said.
Vaccination could play a stellar role in balancing virus management and sustaining economic activity.
India is the fastest country to administer 100 million doses of vaccine as of April 10. As of early April, around 7 per cent of the population had been inoculated.
India began its vaccination drive in mid-January.
The Centre, on Tuesday, also decided to grant emergency use approval to all COVID-19 vaccines developed and manufactured in foreign countries and which have been granted emergency approval by drug regulators in US, UK, Japan and Europe to increase the availability of vaccines.