Raters see India's GDP contracting more in FY21 than projected earlier

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Major rating agencies have raised their projections of the contraction of India’s economy in the current fiscal year, with some anticipating a double-digit fall after gross domestic product (GDP) declined 23.9 per cent in April-June. 

They suggested the government come up with fiscal stimuli to spur demand. However, some doubted if the government would do so, given the pressure on the fiscal deficit owing to declining tax collection and low GDP.

Nomura revised its projection for GDP fall to 10.8 per cent against the 6.1 per cent it said earlier.

“Looking ahead, high frequency indicators have improved so far in