S&P Global Ratings: Indian economy may decline by 9% for current financial year

New Delhi: S&P Global Ratings has forecast a 9 percent decline in the Indian economy in the current financial year. Earlier, the rating agency had forecasted a 5 per cent decline in the Indian economy.

The rating agency S&P on Monday lowered India’s growth forecast for 2020-21 to minus 9 percent. According to S&P Global Ratings, Asia-Pacific economist Vishrut Rana, private economic activity has not picked up due to the Corona crisis as the cases of corona are constantly increasing.

The US rating agency says that due to pandemic, private spending and investment in India will remain at a low level for a long time. Earlier, S&P had projected a 5 per cent decline in the Indian economy. According to the rating agency, in the first quarter of the current financial year, GDP has registered a decline of 23.9 percent, which is more than expected.

The rating agency says that despite the relaxation of the lockdown, people are avoiding leaving the house. The rating agency said that until the corona is controlled, there is no hope of a rapid revival in the economy.

Prior to this, rating agencies Moody’s and Fitch have also lowered India’s growth forecast. Moody’s has forecast a decline of 11.5 percent in the Indian economy and 10.5 percent in the current financial year.

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