Fitch had in June last year revised outlook for India to 'negative' from 'stable' on grounds that the coronavirus pandemic had significantly weakened the country's growth outlook and exposed the challenges associated with a high public debt burden.
Even before the shock of Covid-19, India’s economy had been losing momentum with growth slowing steadily. Now, after a large GDP contraction due to the pandemic, medium- to long-term prospects remain uncertain amid the second wave of infections.
India (the Centre and states) spend 1.26% of GDP (FY20BE) on health, way behind Brazil at 6.8%, Turkey 10.5% and Mexico 11.6%. States were estimated to spend spend about Rs 1.9 lakh crore in FY20BE while the Centre about Rs 77,000 crore.