Moody's Investors Service on Friday slashed India's GDP projection to -11.5 per cent for the current fiscal year, from -4 per cent estimated earlier. It said the country's credit profile is increasingly constrained by low growth, high debt burden and weak financial system, with these risks exacerbated by the coronavirus pandemic.
"Mutually reinforcing risks from deeper stresses in the economy and financial system could lead to a more severe and prolonged erosion in fiscal strength, exerting further pressure on the credit profile," Moody's said, while projecting an 11.5 per cent contraction for the country's this fiscal year.
For 2021-22, it projected the economy to clock a growth of 10.6 per cent.
Earlier this week, another ratings agency, Fitch, projected a 10.5 per cent contraction for the economy this fiscal year.
Domestic agencies Crisil and India Ratings have projected the economy to contract 9 per cent and 11.8 per cent respectively.