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.
Global rating and research houses, such as Fitch and Goldman Sachs, earlier this week cut their estimates for growth in India’s gross domestic product (GDP) for the current fiscal 2020-21 (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, when the GDP came in at a negative 23.9 per cent year-on-year (YoY), the worst performance in nearly four decades.