Aided by strong demand recovery, credit ratio rebounds to 1.33 in H2FY21, from 0.54 in H1FY21. GDP could grow at 11% in FY22, but the resurgence in Covid-19 cases is a key downside risk, says CRISIL.
Leading economists believe the vaccine might not end the economic disruption which the Covid-19 pandemic has caused. Normalcy will come over time, and with pain.
The five severe lockdowns in India have paralysed the economy, and the GDP is expected to contract 4% to 6% in FY21, according to various market estimates.
The cautious easing of the lockdown in several states and the reverse migration of labour will make a return to normal economic activity a difficult task.
