S&P cuts India growth forecast to 1.8% from 3.5% for FY 20-21

S&P Global Ratings has declined India’s growth forecast for the FY 20-21 to 1.8% from 3.5% estimated earlier due to an extended nationwide lockdown to contain COVID-19 spread. For the FY 2020-2021, the rating agency has projected India’s growth to 5%.
In March 2020, S&P cut India’s growth forecast to 3.5% for 2020-21 fiscal, from 5.2% projected earlier.
On Asia-Pacific front, the growth is revised to 0.3%.
As per S&P, the recovery from the pandemic will be flattish U-shape by 2023. It means the economy is gradually declining but will bounce back over time with positive impact.