Coronavirus pandemic: Fitch cut India’s sovereign rating outlook to 'negative'

(Karachi) America's credit rating agency,Fitch, has cut India’s sovereign rating outlook to 'negative' on Thursday.

The rating agency stated that India's growth and economy has been hit hard as it weakened due to the coronavirus outbreak. It maintained that the pandemic has exposed the challenges faced by India associated with a high public-debt burden.

India's economic activity will contract by 5 percent in the fiscal year ending March 2021, according to Fitch.

"It remains to be seen whether India can return to sustained growth rates of 6 percent to 7 percent as we previously estimated, depending on the lasting impact of the pandemic, particularly in the financial sector," it highlighted.

Fitch stated, "Fiscal metrics have deteriorated significantly, notwithstanding the government's expenditure restraint, due to the impact of the severe growth slowdown on revenue, the fiscal deficit and public-sector debt ratios."