It maintained a unfavourable outlook for the ranking reflecting “lingering uncertainty across the debt trajectory”.
“We forecast a 12.eight per cent restoration in GDP within the fiscal yr ending March 2022 (FY22), moderating to five.eight per cent in FY23, from an estimated contraction of seven.5 per cent in FY21,” it stated.
“Nonetheless, a current surge in coronavirus circumstances poses rising draw back dangers to the FY22 outlook. This second wave of virus circumstances could delay the restoration, however it’s unlikely in Fitch’s view to derail it.”
It anticipated pandemic-related restrictions to stay localised and fewer stringent than the nationwide lockdown imposed in 2020, and the vaccine rollout has been stepped up.