Moody’s Investors Service on Friday said it estimates India’s GDP will hit “zero” in 2020-21, and cautioned that the country’s sovereign rating could be downgraded if its fiscal metrics weaken materially.

Moody’s pointed to a wide fiscal deficit, high government debt, weak social and physical infrastructure and a fragile financial sector.

The quality of India’s growth has declined in recent years, demonstrated by financial stress among rural households, relatively low productivity and weak job creation, the agency said.

Hours after Moody’s growth swipe, Nomura forecast a negative 0.5 per cent growth this fiscal, while Goldman Sachs predicted a negative 0.4 per cent growth.