The growth forecast for India in fiscal year 2021 was revised down, as the spike in COVID-19 cases during May dented the recovery.
For the next fiscal, however, the IMF has forecast an 8.5% growth for India, 160 basis points higher than its April forecast.
S&P said that households are running down saving buffers to support consumption and a desire to rebuild saving could hold back spending even as the economy reopens.
Moody's said that the 10 states that have been hardest hit by the second wave collectively account for more than 60 per cent of the pre-pandemic level of India's GDP.
The central bank, in its annual report for 2020-2021, further said that previous year has left a scar on the economy.
"A way out of this health and economic crisis is increasingly visible,'' IMF chief economist Gita Gopinath told reporters.