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.
Moody's said that the violence risks further complicating efforts to assemble a stable majority coalition government which will have negative implications.
As per official estimates, the Indian economy contracted 8 per cent in 2020-21 fiscal year, which ended on March 31, 2021.
Its profitability has steadily improved to its 10-year high of Rs 18,948 EBITDA/tonne during the third quarter of FY21, from Rs 4,969 in the first quarter.
Some telcos have large cash holdings while others recently raised debt to fund the purchases, there will not be a significant impact on their balance sheets particularly.
For current fiscal, the US-based rating agency expects the economy to contract 7 per cent, lower than its previous estimate of 10.6 per cent contraction.
The Fiscal Responsibility and Budget Management Act will also be amended to achieve a fiscal deficit of 4.5 per cent of GDP by 2025-26 only.
The provisional Baa3 rating also benefits from AICTPL's strong and committed shareholders as well as the bond's fully amortising fixed-cost debt structure.