Moody’s Projects Indian Economy to Contract by 11.5% This Fiscal

Moody’s Investors Service on Friday slashed India’s growth projection for the current fiscal to (-) 11.5 per cent, from (-) 4 per cent estimated earlier. It said India’s credit profile is increasingly constrained by low growth, high debt burden and weak financial system. These risks have been exacerbated by the coronavirus pandemic.

“Mutually reinforcing risks from deeper stresses in the economy and financial system could lead to a more severe and prolonged erosion in fiscal strength, exerting further pressure on the credit profile,” Moody’s said while projecting an 11.5 per cent contraction in Indian economy this fiscal. For 2021-22, it projected the economy to clock a growth of 10.6 per cent.