S&P Global Ratings on Thursday, April 22, said the Indian economy is projected to grow at 11% in the current fiscal, but flagged the “substantial” impact of broader lockdowns on the economy.

In its report on Asia-Pacific Financial Institutions, S&P said the control of Covid remains a key risk for the economy. New infections have spiked in recent weeks and the country is in the middle of a second pandemic wave.

“Our forecast growth of 11% for India in 2021 is followed by a 6.1-6.4% forecast increase for the next couple of years… Some targeted lockdowns have already been implemented and more will likely be needed. The impact of broader lockdowns on the economy could be substantial, depending on their length and scope,” it said.

S&P, which currently has a ‘BBB-’ rating on India with a stable outlook, has forecast an 11% growth in the Indian GDP for the fiscal beginning April 1 on account of a fast economic reopening and fiscal stimulus.