<p>A second wave of coronavirus infections in India and new restrictions imposed to contain the surge pose a credit-negative threat and risks weakening the country's economic recovery, Moody's Investors Service said.</p>.<p>"The (second wave) presents a risk to our growth forecast as the virus management measures will curb economic activity and could dampen market and consumer sentiment," the agency's analysts said in a note dated Monday.</p>.<p>India reported 161,736 new coronavirus infections on Tuesday, hitting the world's highest daily tally once again, after overtaking Brazil as the second-most affected country.</p>.<p><strong>Also read | <a href="https://www.deccanherald.com/business/business-news/retail-inflation-rises-to-552-in-march-973544.html" target="_blank">Retail inflation rises to 5.52% in March</a></strong></p>.<p>Officials in the worst-hit state of Maharashtra, home to the financial capital of Mumbai, said they were considering a broader lockdown this week after large closures at the weekend.</p>.<p>However, the targeted nature of containment measures instead of a nationwide lockdown and rapid progress on vaccinating the population will mitigate the credit-negative impact, Moody's said.</p>.<p>India's gross domestic product is still likely to grow in the double digits in 2021 given the low level of activity in 2020, Moody's said.</p>.<p>Meanwhile, Barclays said in a note on Monday that India's accelerated vaccination drive may limit the economic disruption caused by a resurgence in COVID-19 cases.</p>.<p>Moody's also echoed concerns raised by Barclays that a shortage of vaccines and India's population of nearly 1.4 billion could slow progress of the vaccine rollout.</p>.<p>India on Monday approved the use of Russian Sputnik V Covid-19 vaccine and has so far used two vaccines, one developed by AstraZeneca and Oxford University, and the other by domestic firm Bharat Biotech.</p>.<p>Some states, including Maharashtra and Odisha, have complained of a scarcity of vaccines during the second wave that has forced some centres to turn away people.</p>
<p>A second wave of coronavirus infections in India and new restrictions imposed to contain the surge pose a credit-negative threat and risks weakening the country's economic recovery, Moody's Investors Service said.</p>.<p>"The (second wave) presents a risk to our growth forecast as the virus management measures will curb economic activity and could dampen market and consumer sentiment," the agency's analysts said in a note dated Monday.</p>.<p>India reported 161,736 new coronavirus infections on Tuesday, hitting the world's highest daily tally once again, after overtaking Brazil as the second-most affected country.</p>.<p><strong>Also read | <a href="https://www.deccanherald.com/business/business-news/retail-inflation-rises-to-552-in-march-973544.html" target="_blank">Retail inflation rises to 5.52% in March</a></strong></p>.<p>Officials in the worst-hit state of Maharashtra, home to the financial capital of Mumbai, said they were considering a broader lockdown this week after large closures at the weekend.</p>.<p>However, the targeted nature of containment measures instead of a nationwide lockdown and rapid progress on vaccinating the population will mitigate the credit-negative impact, Moody's said.</p>.<p>India's gross domestic product is still likely to grow in the double digits in 2021 given the low level of activity in 2020, Moody's said.</p>.<p>Meanwhile, Barclays said in a note on Monday that India's accelerated vaccination drive may limit the economic disruption caused by a resurgence in COVID-19 cases.</p>.<p>Moody's also echoed concerns raised by Barclays that a shortage of vaccines and India's population of nearly 1.4 billion could slow progress of the vaccine rollout.</p>.<p>India on Monday approved the use of Russian Sputnik V Covid-19 vaccine and has so far used two vaccines, one developed by AstraZeneca and Oxford University, and the other by domestic firm Bharat Biotech.</p>.<p>Some states, including Maharashtra and Odisha, have complained of a scarcity of vaccines during the second wave that has forced some centres to turn away people.</p>