S&P affirms India's 'BBB-' rating, projects 10% GDP growth in FY22

"The stable outlook reflects our view that India's contraction in fiscal 2021 will be followed by a significant recovery, which will stabilise the country's broader credit profile," said S & P

S & P Global Ratings on Friday affirmed its BBB-minus long-term and A-3 short-term unsolicited foreign and local currency sovereign ratings on India.

The outlook on long-term rating is stable, it said.

"We expect economic activity in India to begin to normalise in fiscal 2022, resulting in real GDP growth of about 10 per cent," said S & P adding that a significant proportion of this rebound will be due to very weak base in the current fiscal year.

"The Indian economy's long-term outperformance highlights its historical resilience. The country's wide range of structural trends, including healthy demographics and competitive unit labour costs,