Amid the second wave of COVID-19 infections and slower pace of vaccination, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has revised down India's FY22 real GDP growth forecast to 10.1 per cent, from earlier projection of 10.4 per cent. It expects the second wave to start subsiding by mid-May.
As per the rating agency, the impact of the second wave will not be as disruptive as the first one, despite the daily case load touching three times of the first wave's peak, as lockdowns are set to be localised ones. Ind-Ra said that unlike the first wave, the administrative response is not abrupt, and is unfolding gradually in a graded manner.
The report noted that also, households, businesses and other economic agents are better prepared and there is a significant amount of learning by doing, which can help them withstand and navigate through the second wave of COVID-19 crisis. Additionally, the vaccine will also enhance safety and reduce the fear element among the vaccinated economic agents.
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