S&P Further Slashes India’s GDP Forecast to 3.5% from 5.2% for FY21

S&P Global Ratings has further slashed India’s growth forecast to 3.5% from a previous downgrade to 5.2% for the fiscal year 2020-21.
The latest downgrade is due to the slump in demand, because of the Covid-19 outbreak, which is leading to declining credit quality and rising defaults particularly among non financial corporates with weaker credit profiles.
For the Financial year 2019-20, the rating agency has estimated growth forecast of 5%.
However the S&P expects the Indian economy to bounce back to 7.3% in FY22.
FY20- 5%
FY21- 3.5%
FY22- 7.3%