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Last Updated : Jun 30, 2020 07:36 PM IST | Source: PTI

Fitch slashes India's FY22 growth forecast to 8%

The rating agency, however, retained its projection of Indian economy contracting by 5 percent in the current fiscal.

PTI
Representative Image (Moneycontrol)
Representative Image (Moneycontrol)

Fitch Ratings on June 30 lowered India's growth forecast for 2021-22 fiscal to 8 percent from 9.5 percent projected last month.

The rating agency, however, retained its projection of Indian economy contracting by 5 percent in the current fiscal.

The country's economic growth stood at an estimated 4.2 percent in 2019-20.

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Fitch in its June update of Global Economic Outlook, projected Indian economy to grow 5.5 percent in 2022-23.

Also Read | COVID-19 may derail recovery of Indian banks by years: S&P Global Ratings

"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 percent from 9.5 percent in the previous GEO," Fitch said.

In May update to the oulook, Fitch had projected 9.5 percent growth in 2021-22.

S&P has forecast a 5 percent contraction in the fiscal year starting April, and the growth to recover to 8.5 percent next fiscal.

Moody's expects India's real GDP to contract by 4 percent in fiscal 2020 due to the shock from the coronavirus pandemic and related lockdown measures, followed by 8.7 percent growth in fiscal 2021 and closer to 6 percent thereafter.

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First Published on Jun 30, 2020 06:22 pm
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