Moody's forecasts 11.5% contraction in India's economic growth in FY21

The downward revision in India's forecast for FY21 comes on the heels of a sharp contraction in Indian economy in the April-June 2020 period

Ratings agency Moody's on Friday projected India's economic growth would contract 11.5 per cent this fiscal due to the coronavirus pandemic.
 

For 2021-22, it projected the economy to clock a growth of 10.6 per cent. "Mutually reinforcing risks from deeper stresses in the economy and financial system could lead to a more severe and prolonged erosion in fiscal strength, exerting further pressure on the credit profile," said the agency, according to PTI.

"India’s credit profile increasingly constrained by low growth, high debt burden and a weak financial system."

Global rating and research houses, such as Fitch and Goldman Sachs, earlier