Second wave of Covid-19 infections can imperil India’s economic recovery, says American credit rating agency S&P. A sharp surge in new cases has prompted lockdown-like restrictions across the country since April of this year.

In its assessment, S&P said, “In a moderate scenario in which the pandemic peaks later this month, GDP for the full fiscal year could drop by another 1.2 per cent.”

The drop in GDP (gross domestic product) would deepen to 2.8 per cent in a ‘severe’ scenario, the credit rating agency added.

S&P also said that current lockdowns have not been as broad compared to those enforced in India last year since people and firms are now familiar with restricted mobility.