S&P Global Ratings has slashed India's FY21 growth forecast to negative 9%, from (-) 5% it had estimated earlier.
The rating agency said that rising Covid-19 cases would keep private spending and investment lower for longer. It said risks to the growth outlook include a weaker recovery in informal sectors of the economy and deeper economic losses for micro and small enterprises.
One factor that presents a potential upside to growth is the availability of a widely-distributed Covid vaccine earlier than mid-2021, S&P added.