In its latest projections on the Indian economy, Fitch Ratings revised down India’s economic growth forecast to 0.8% in the fiscal year ending March 2021 (FY21).
Expect India’s growth to rebound to 6.7% in FY22.
India has limited fiscal space to respond to challenges posed by health crisis.
India’s relatively robust external position supports its sovereign rating, and has helped to offset its comparatively weaker fiscal metrics.
Now expect India’s ratio of public debt/GDP to rise to over 77% of GDP in FY21.
Coronavirus damages India’s growth and fiscal outlook.
As on Tuesday, India confirms more cases of novel coronavirus, tally at 29,435 resulting in 934 deaths, the country’s Health Ministry cited.