India's economy is in deep trouble, S&P Global Ratings on Friday said with growth expected to contract by 5 per cent this fiscal. Difficulties in containing the virus, an anemic policy response, and underlying vulnerabilities, especially across the financial sector, are leading us to expect growth to fall by 5% this fiscal year before rebounding in 2021. The pandemic remains the key driver of the country's prospects. Even though lockdowns have eased in less populated areas, urban growth engines are still held back by rising infections, severe mitigation policies, and consumer risk aversion. A normal monsoon, low oil prices, and supportive external financial conditions will only partly offset these effects.
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