India’s economic recovery is threatened by the second wave of COVID-19 infections, which poses a downside risk to the GDP and exposes other nations to further waves of outbreaks.
Key takeaways
“In addition to the substantial loss of life and significant humanitarian concerns, S&P Global Ratings believes the outbreak poses downside risks to GDP and heightens the possibility of business disruptions,”
May have to revise its base-case assumption of 11 percent growth over fiscal 2021/2022, especially if wider containment measures are re-imposed.
Expect the consumer retail and airport sectors to have a dragged out recovery with localized lockdowns and curfews in several parts of the country, and said the Indian banking sector continued to face a “high level of systemic risk”.
“The Asia-Pacific region is susceptible to contagion from the highly infectious COVID-19 variants present in India, given the low ratios of vaccination in the region.”
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