Indian economy: Omicron poses limited downside to Indian economy, say economists
There is scant downside risk to the Indian economy in the last months of this financial year from the Omicron coronavirus variant, according to economists polled by Reuters who said New Delhi should focus on fiscal prudence in its February budget.
Asia’s third-largest economy is in the midst of a resurgence in coronavirus cases driven by the new variant that has forced most states to impose localised restrictions.
The Jan. 11-18 poll of over 45 economists forecast 5.0% economic growth this quarter, a sharp downgrade from the 6.0% given in December, finishing the year at 9.2% compared with 9.5% in the previous month’s poll.
But nearly two-thirds of those responding to an additional question, 21 of 32, said there was limited downside to the outlook for the rest of this fiscal year which ends in March.
Nine said it was at risk of downgrades, and two said it was prone to upgrades. The median growth projection for the next fiscal year…
