Moody's pegs FY21 GDP growth at 0%, says upgrade unlikely in near term

The rapid and widening spread of the Covid-19, deteriorating global economic outlook, falling oil prices, and financial market turmoil are creating a severe and extensive economic and financial shock

Moody's Investors Service on Friday projected India's growth at 0 per cent for the current fiscal and said the negative outlook on sovereign rating reflects increasing risks that GDP growth will remain significantly lower than in the past.

The outlook also partly shows weaker policy effectiveness in addressing economic and institutional issues, it noted in the update to its November 2019 rating forecast.

Stating that the negative outlook indicates that an upgrade is unlikely in the near term, Moody's said high government debt, weak social and physical infrastructure, and a fragile financial sector face further pressures due to the coronavirus