Mumbai, June 30 : Fitch Ratings, on Tuesday, cut India’s growth forecast for 2020-21 fiscal to 8 per cent from 9 per cent projected last month.
However, it retained the projected contraction of 5 per cent in Indian economy this fiscal.
India’s economic growth stood at an estimated 4.2 per cent last fiscal. In its June update of ‘Global Economic Outlook’, Fitch projected Indian economy to grow 5.5 per cent in 2022-23.
Fitch said, “in India, where authorities imposed one of the most stringent lockdowns to try to halt the spread of Coronavirus, measures are being relaxed only very gradually, with a limited policy easing response and ongoing financial sector fragilities, we have put our 2021 forecast to 8 per cent from 9.5 per cent in the previous GEO.”
In its May update to the outlook, Fitch had projected 9.5 per cent growth in 2020-21.
S&P has forecast a 5 per cent contraction this fiscal and the growth to recover to 8.5 per cent next fiscal.
Moody’s expects India’s GDP to contract by 4 per cent in Fiscal 2020 due to the pandemic and lockdown measures followed by 8.7 per cent growth in Fiscal 2021 and closer to 6 per cent thereafter.
Also read: Indian Economy to grow at 9.5 % next fiscal : Fitch Rating
