India's growth potential at 6.5-7% but reforms critical for recovery: S&P

The rating agency has forecast a 5% contraction in the fiscal year starting April, and the growth to recover to 8.5% next fiscal

India's economic growth potential in medium and long-term is 6.5-7 per cent but reforms are critical for the country to get back to recovery after deep shock this year, S&P Global said on Friday.

Days after keeping India's rating at lowest investment grade for 13th year in a row, the rating agency in a webinar said despite the contraction in GDP this year, the country continues to be an outperformer among the peer groups.

"Economy around the world are facing a very difficult situation," Andrew Wood, S&P Director & Lead Analyst Sovereign & IPF Ratings APAC, said.

"India, despite a