Global ratings agency Moody's upped India's growth projection to 13.7 percent in the next fiscal from 10.8 percent estimated earlier. These numbers come on the back of normalisation of activity and confidence in the market with the rollout of COVID-19 vaccines. The ratings agency, however, stated that the economy will contract 7 percent than its earlier estimates of 10.6 percent in the current fiscal, says Gene Fang, Moody’s Investors Service Associate Managing Director (Sovereign Risk).

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"We assume a rebound of 13.7 percent growth in the next fiscal on normalisation of base effects and activity," Fang added. Apart from this, the very large rebound incorporates the view that recovery in activity will continue, with the rollout of vaccines and growing confidence in the market that activities are coming back to normal, Fang said during an online conference on India Credit Outlook 2021, organised by India's affiliate ICRA and Moody’s.

As per the principal economist of ICRA, in the third quarter (October-December) of the current fiscal, it expects 0.3 percent growth.

According to some inputs, Investment Information and Credit Rating Agency (ICRA) expects the Indian economy to contract 7 percent in the current fiscal and growth to rebound to 10.5 percent in the next fiscal beginning April 1.

On the other hand, "Recession in India has ended," he said and added that there could be upward growth in FY22 if the Budget announcements are implemented, government's capital expenditure rises and vaccination drives are carried out.

The ongoing vaccination drive has helped the business sentiments grow and create a sense of positive environment. Taking into consideration these sentiments and a sense of latent growth, it is likely that analysts are projecting positive outcomes in the near future.

Different sectors of economy have started reflecting recovery and things are likely to get better with the continuation of vaccination drive across the country.