(Deepshikha Gautam, Intern Journalist) New Delhi: Rating agencies have forecast a major decline in the Indian economy from the Corona epidemic and lockdown. The Fitch rating forecasts a steep 10.5% drop in the Indian economy in the current financial year 2020-21. At the same time, India’s rating has predicted a steep drop of 11.8%. Goldman Sox forecasts a large 14.8% drop in the country’s economy.
Nomura, HSBC, and Morgan Stanley have also forecasted a major decline in the large Indian economy due to Corona. Fitch said that the Corona infection is steadily increasing. Due to this, the lockdown has to be put in pieces, which has several affected the economic activities. India’s GDP declined by 23.9 percent in the first quarter of the current financial year. The rating agency said that the income of families and companies will also severally affected by the lockdown. Financial support has also been Limited during this period. Along with this, the quality of financial sector assets is coming down, which will affect the interest provision amid weak capital buffer of banks.