That was anyways bound to happen. Fitch also joined the chorus downgrading India’s growth forecast for FY21 to 5.1% from 5.6% due to the aftermath of the Covid-19 virus. Earlier, S&P had slashed its 2020 growth projection for India to 5.2% from 5.7%. In fact, S&P has clearly expressed its apprehension that the Asia Pacific region may slide into recession as countries implement strict lock-downs to contain the pandemic. Moody’s and OECD have already cut their 2020 growth projections for India. The big risk, according to Fitch, is that the impact of the outbreak on consumer and business sentiment could hit growth in a big way. India is heavily dependent on key Chinese intermediate inputs in sectors like electronics (60%) and machinery and equipment (47%). Supply-chain disruptions are expected to hit business investment and exports. Fitch also pointed at the collapse of Yes Bank as another trigger for the slowdown as it has exposed the frailties of the financial services sector in India. Most analysts and raters have been expecting the RBII to take additional measures including a cut in policy rate to 4.5%, but that is yet to come.