Credit rating agency Moody’s estimated an 11.5% contraction in Indian economic growth rate Fiscal Year 2021 amid the coronavirus pandemic.
“India’s credit profile increasingly constrained by low growth, high debt burden, and a weak financial system,” said Moody’s.
“India’s policymaking institutions have struggled to mitigate, contain risks exacerbated by Covid-19,” the rating agency said. Risks from deeper stresses in the Indian economy, the financial system can lead to fiscal strength erosion,” agency further stated.
Moody’s predicted 0% growth rate for Indian fiscal year 2021 in May, after the extension of lockdown but now it’s -11.5%.
Moody’s also stated that India’s economic growth could bounce back to 10.6% in the next fiscal year (FY22).