Fitch also forecast a 5 per cent contraction in GDP in the ongoing financial year. India’s economy is forecast to bounce back with a sharp growth rate of 9.5 per cent next year provided it avoids further deterioration in financial sector health. “The pandemic has drastically weakened India’s growth outlook and laid bare the challenges caused by a high public-debt burden,” Fitch said . India’s long-term rating was affirmed at “BBB-” with a stable outlook while the short-term rating was held at “A-3”. The agency also assumes that the government’s fiscal deficit will recede markedly following a multi-year high this financial year.

Source: The Telegraph June 10, 2020 20:37 UTC