India's medium term fiscal outlook key for rating action: Thomas Rookmaaker

Fitch Ratings expect India's economic activity to contract by 5% in FY21 due to the strict lockdown measures imposed, before rebounding by 9.5% in FY22

As Fitch Ratings revises outlook on India’s ratings to negative from stable, its Director (sovereign ratings) THOMAS ROOKMAAKER tells Indivjal Dhasmana that though the country's economic growth would bounce back in FY22, it is yet to be seen whether medium-term growth outlook of 6-7 per cent is achievable. He talks on fiscal metrics, government debt market, India-China tensions, and signals to investors due to actions by rating agencies. Edited excerpts:

Fitch Ratings expects India’s economy to contract 5 per cent in FY21 due to the Covid-19 pandemic. But when normalcy returns, you expect the recovery to be quite sharp. Then why