"fitch-ratings"

Fitch believes that rapid vaccination could support a sustainable revival in business and consumer confidence; however, without it, economic recovery would remain vulnerable to further waves and lockdowns.

The credit rating agency said pharma company sales will grow in FY22 as sales normalise in categories affected by the pandemic in the previous year.

However, recovery is likely to be delayed as economic activity dropped in April-May, says Fitch

It said India entered the pandemic with little fiscal headroom from a rating perspective.

The government's prioritisation of fiscal support for the population's health and well-being, and ongoing economic recovery are understandable.

Fitch ratings said the revival of the reform agenda is among the Indian government's policy responses to the Covid-19 pandemic shock

The notes are expected to be rated Baa3 by Moody's Investors Service, BBB-minus Standard & Poor and BBB-minus by Fitch Ratings.

"Nevertheless, there are also downside pressures to growth and it will take time to assess whether the reforms are implemented effectively," the agency said in a statement.