India's growth outlook has been revisited by rating agency Fitch Ratings. Earlier, Fitch had talked about a stable outlook for India. Fitch has negated India's outlook after eight years. The agency said that due to coronavirus, the Indian economy has been badly affected. However, the rating agency has retained the 'BBB-' rating for India as before.
The rating agency Moody's also reduced the growth outlook. Moody's reduced India's sovereign rating from 'Baa2' to 'Baa3'. The agency has maintained a negative outcrop for the country. The agency said in a statement that India's growth outlook has weakened this year due to the coronavirus epidemic. There is a big debt challenge before the Indian government. Experts predict that by the end of FY 2021, the growth of India's economic activities will reach -5 percent. After the lockdown on 25 March, economic activities were stopped in the country for about 60 days. The growth of the country's economic activities in the fiscal year 2022 can be up to 9.5 percent.
Fitch says that the way Covid 19 cases are increasing in the country, the risk is also increasing. Keeping these things in mind, the rating has been revised. According to Fitch's estimate, government debt could be 84.5 percent of GDP in FY 2021. In FY 2020, it was 71 percent of GDP. Whereas in 2019 its figure was 42.2 percent of GDP. According to Fitch Ratings, due to the coronavirus epidemic has had a profound impact on India's economy. This has weakened the growth outlook for the current year. A number of challenges have arisen due to the epidemic. The debt burden has increased.
Fitch revised rating for Indian economy
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