The impact of the coronavirus crisis on the Indian economy will be severe, according to S&P Global Ratings. It said on Thursday the country’s economy will shrink five percent in the current fiscal year (April 2020 to March 2021).

The contraction forecast reverses the agency’s previous growth projection of 1.8 percent made in April. Moody’s rating agency forecasted a ‘zero’ growth rate for India in FY21.

“We have lowered our growth forecast for fiscal year ending March 2021 to a five percent contraction… We currently assume that the outbreak peaks by the third quarter,” S&P said. Earlier this week, ratings agencies Fitch and Crisil also projected a five-percent contraction for the nation’s economy. (RT)