NEW DELHI: Fitch Ratings on Tuesday lower India’s growth forecast for 2021-22 fiscal to Eight per cent from 9.5 per cent projected final month.
It, nevertheless, retained its projection of Indian economy contracting by 5 per cent within the present fiscal.
Indian financial growth stood at an estimated 4.2 per cent in 2019-20.
In its June replace of Global Economic Outlook, Fitch projected Indian economy to develop 5.5 per cent in 2022-23.
“In India, where authorities imposed one of the most stringent lockdowns globally to try to halt the spread of the virus, measures are being relaxed only very gradually; with a limited policy easing response and ongoing financial sector fragilities, we have pared our 2021 forecast to 8 per cent from 9.5 per cent in the previous GEO,” Fitch mentioned.
In May replace to the oulook, Fitch had projected 9.5 per cent growth in 2021-22.
S&P has forecast a 5 per cent contraction within the fiscal yr beginning April, and the growth to get better to 8.5 per cent subsequent fiscal.
Moody’s expects India’s actual GDP to contract by Four per cent in fiscal 2020 due to the shock from the coronavirus pandemic and associated lockdown measures, adopted by 8.7 per cent growth in fiscal 2021 and nearer to 6 per cent thereafter.