Fitch Ratings said that if India manages to avoid further degradation in financial sector it can bounce back with the growth rate of 9.5 % next year.
India had declared the world’s largest lockdown on March 25 to combat the spread of coronavirus, bringing the economy to a halt.
Fitch Rating had earlier said that a 5% contraction in the GDP is likely due to corona virus Economic lockdown.
On the other hand due to lockdown the credit ratings agency Standard & Poor’s (S&P) retained India’s sovereign rating at “BBB-” – the lowest investment-grade level – with a stable outlook and promised to upgrade the country’s ratings if the government significantly curtailed its fiscal deficit.
The government has announced stimulus package amounting to 10 per cent of GDP to bring the economy on track.