Fitch Ratings on Tuesday projected India’s GDP to contract 5% in FY21--in sync with forecasts by Crisil and Goldman Sachs-- blaming longer than expected lockdown in the country that has crippled normal economic activity. “The biggest forecast cut was to India where we now anticipate a 5% decline in the current financial year (ending March 2021) in contrast to an earlier forecast of growth of 0.8%.
India has had a very stringent lockdown policy that has lasted a lot longer than initially expected and incoming economic activity data have been spectacularly weak," the rating agency said in the latest update to its Global Economic Outlook (GEO).