Coronavirus has broken into havoc these days. So far, more than 11,000 people have died from it. In such a situation, this epidemic has shaken the world economy along with India. However, some time ago rating agencies like Fitch, Moodys and S&P predicted India’s GDP growth. In such a situation, let’s take a look at why the estimates of these agencies are alarming for India.
Fitch Reduced Rating
Fitch Ratings lowered estimates of GDP growth of the country. The rating agency reduced GDP growth to 5.1 per cent for the fiscal year 2020-21. Fitch Ratings had earlier estimated India’s GDP growth at 5.6 per cent in December 2019. The biggest reason for the decreased rating on growth rate is the spread of coronavirus infection. The rating agency says that the impact of coronaviruses may increase in the coming weeks, due to which there is a high risk of damage to the economy. The agency says the supply chain disruptions will affect investment and exports.
Moody’s reduced rating
Rating agency Moody’s Investors Service has also lowered India’s growth forecast. In fact, given the impact of the threat of global recession, Moody’s has reduced India’s economic growth rate from 5.4 to 5.3. In fact, Moody’s has lowered the rating, given the impact of the Corona virus epidemic on the Indian economy.
S&P reduced rating
S&P Global Ratings ratings like Moody’s and Fitch are disappointing for India. The rating agency has reduced India’s economic growth forecast to 5.2 per cent in 2020. The S&P has also said that the world economy is going through a recession due to the coronavirus epidemic. For your information here, let us inform that the agency gave a rating of 5.7 percent to India’s GDP growth in 2020.