India’s economy will recover after the containment of the Covid-19 pandemic and the country will maintain its sound net external position, Niti Aayog vice-chairman Rajiv Kumar said on Thursday.
Kumar further said that India’s strong democratic institutions promote policy stability and the ongoing economic reforms, if executed well, should keep the country’s growth rate ahead of peers.
His comments have come amid Moody’s downgrading the country’s rating and S&P retaining it at the lowest investment grade.
S&P Global Ratings on Monday said Indian economy will shrink by 5 per cent in the current fiscal, as the fiscal stimulus worth 1.2 per cent of GDP will not be enough to provide significant growth support.
Last week, Moody’s Investors Service had said India’s economy is expected to contract for the first time in more than four decades as economic damage owing to the coronavirus-induced lockdown will be significant with lower consumption and sluggish business activity.