India's GDP

S&P also reported a 5% decline in India's GDP...

India's current economic growth rate estimates for the current financial year are being slashed by various rating agencies, including S&P Global Ratings.

S&P has projected a five per cent decline in India's GDP in 2020-21. The decline is due to the impact of Covid-19 on economic activity.

S&P estimates that economic activity in India will pick up in the third quarter of the current financial year. India had imposed a two-month lockdown due to the coronavirus and in some areas even longer lockdowns that have brought economic activity to a standstill.

The current disruption in economic activity is expected to continue in the coming year, i.e. in the post-Covid-19 world. In April, S&P projected the country's economic growth to be 1.80%, which has now been downgraded to 5% negative. However, the agency also expects India's economic growth to pick up to 8.50% in the next financial year from 7.50% earlier.

Earlier this week, Fitch Ratings and Crisil had projected a 5% slowdown in India's economic growth. GDP estimates are falling short of India's long-awaited lockdown, an analyst said.