Moody’s Investors Service said in May that economic damage as a result of India’s coronavirus lockdown will likely be extensive and reflect the country’s inherent economic vulnerability and fiscal constraints. The report pointed out that this will have wide-ranging effects on both public and private sectors. Moody’s Investors Service has released a report titled “Coronavirus - India: Lockdown compounds economic challenges as credit risks rise in many sectors”.

“We expect the economic fallout from the coronavirus outbreak to weigh on the already fragile household consumption which, coupled with sluggish business activity, will result in a sharp decline in India’s economic growth in fiscal 2020-21,” says Deborah Tan, a Moody’s Assistant Vice President and Analyst. Even before the coronavirus outbreak, the economy had already been growing at its slowest pace in six years.