Moody's Investors Service revised its forecast for India's real gross domestic product (GDP) for the current fiscal 2020-21 from 11.5 percent contraction earlier to 10.5 percent contraction. It also revised upwards its expectation for GDP growth rate to 10.8 percent for 2021-22 from the earlier 10.6 percent.

Moody's said that the additional stimulus measures announced by the government last week were aimed at increasing manufacturing competitiveness and creating jobs while supporting infrastructure investment, credit availability to stressed sectors.

The Rating agency said, adding that widening the scope of the credit guarantee scheme will boost credit flow and aid recovery. Also,  consumer confidence in India continues to remain relatively weak amid a relentless rise in fresh coronavirus cases, even as it said that the numbers peaked in September. "Stronger nominal GDP growth over the medium term would make it easier for India's government to address its weak fiscal position, which the coronavirus has exacerbated; we forecast government debt to increase to 89.3 percent of GDP in fiscal 2020 and decline to 87.5 percent in fiscal 2021, from an already elevated 72.2 percent in fiscal 2019," it said in a report.

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