S&P sees India GDP contracting by 9% due to Covid-19

A girl wears a protective face mask amidst the spread of the coronavirus disease (COVID-19), in the old quarters of Delhi, India, September 13, 2020. REUTERS/Anushree Fadnavis

KUALA LUMPUR: Rising Covid-19 coronavirus cases in India will keep private spending and investment lower for longer and S&P Global Ratings expects the economy to contract much sharper than forecast.

The rating agency said on Monday it now expects the country's economy to contract by 9% in the current fiscal year, which ends March 31,2021. This was much worse compared with its previous forecast from the economic hit from Covid-19 at -5%.