Covid-19 impact: Moody's, CARE Ratings cut India's FY21 GDP estimates

The global rating agency had earlier predicted GDP to contract 4 per cent. On Friday, it predicated 11.5 per cent contraction

Moody’s on Friday said it expects India’s real gross domestic product (GDP) to contract 11.5 per cent in the financial year 2020-21 (FY21), becoming the latest agency to cut forecast after the first-quarter data showed a sharper-than-expected contraction and a sluggish recovery in indicators thereafter.

The global rating agency had earlier predicted GDP to contract 4 per cent. Domestic ratings agency CARE Ratings also cut its forecast to a contraction of 8-8.2 per cent, from 6.4 per cent. “The credit profile of India is increasingly constrained by low growth, high debt burden and a weak financial system. The country’s policymaking institutions