As per the ratings agency, gradual removal of lockdown restrictions by most states towards the end of the last quarter will also help the GDP to grow.
Besides, it predicted a GVA growth of 7.5 per cent on YoY basis in Q2FY22.
According to the agency, the steady progress in vaccination has improved consumer sentiments.
Furthermore, the economy has been supported by relative resilience of the industrial sector and a gradual rebound in services sector with improved mobility, buoyancy in exports, and improved government capital expenditure.
"For FY22, we continue to retain our GDP growth forecast at 10 per cent albeit with some downside risks emanating from global supply chain disruptions, elevated commodity prices that may tighten inflationary pressures as demand makes a comeback and a potential volatility in global markets as central banks attempt a normalisation of monetary policies," its Chief Analytical Officer Suman Chowdhury said.