India’s economy is back on track after the pandemic and it does not expect the military conflict (in Ukraine) to derail the recovery, said Global financial services provider firm Moody’s Analytics.
“Following a robust rebound of over 9 per cent in the year ending March 2022 (fiscal 2021), we expect real GDP to grow 8.2 per cent in fiscal 2022, the fastest expansion among G20 countries globally and partly reflecting ongoing base effects from pandemic-led disruptions,” it said in a report.
The buoyant economy creates favourable operating conditions for the country’s banks, besides their loan performance and profitability are improving, albeit from a low base. Capital and liquidity levels are also stable.
The global economic fallout from the Russia-Ukraine military conflict will push up inflation and interest rates in India, and create supply constraints, it said.