Economic Rebound Faces Rising Risk From COVID-19 Variants: Report

The July 15-22 poll of 52 economists showed a third consecutive downgrade to the growth outlook for the current fiscal year 2021-22, but also the third such upgrade to the following year.

The country's economic rebound, already weakened in recent months, could lose further momentum as coronavirus variants pose the greatest threat and inflation rises, a Reuters poll of economists found. The latest survey results suggest difficult policy decisions lie ahead for the Reserve Bank of India, which has already seen two consecutive months of inflation above the six per cent upper limit of the range it tolerates. The RBI said last week that prospects for the economy had brightened and the inflation rise would be transitory, echoing the views of most major central banks. But the fast spread of the Delta variant in some states - and it is becoming dominant around the world - has raised doubts as the country contends with a devastating wave of COVID-19.