"While the situation is still evolving and the scale of economic impact is highly uncertain at this point, we think an adverse impact of 0.20 per cent could be felt in India's real GDP growth for the March 20 quarter," it said.
A favourable base effect due to FY20's low growth, improved monetary transmission and support from government spending will aid the growth momentum in the next fiscal, it said.
It warned that a delay in strengthening the balance sheet of the financial sector (banks and non-banking financial sectors) and weak credit impulse could continue to be a "drag" on the growth.
The Reserve Bank of India is expected to cut rates by 0.25 percentage points in the next fiscal and policymakers may continue to rely on "creative measures" like the liquidity moves in the last policy review to boost the growth, it said.
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