On Friday, Moody's Investors Service revised its economic growth projection for India for the current fiscal to (-) 11.5 percent, from (-) 4 percent estimated earlier.
It said India's credit profile is increasingly constrained by low growth, high debt burden and weak financial system, which have been exacerbated by the coronavirus pandemic.
"Mutually reinforcing risks from deeper stresses in the economy and financial system could lead to a more severe and prolonged erosion in fiscal strength, exerting further pressure on the credit profile," Moody's said.
For the following financial year 2021-22, it projected the economy to clock a growth of 10.6 percent.
Moody's projection follows that of global rating agency Fitch, which earlier this week, estimated a 10.5 percent contraction in Indian economy this fiscal. Domestic agencies Crisil and India Ratings and Research have projected contraction of 9 percent and 11.8 percent, respectively.