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Fitch cuts India growth projection to 8 per cent for 2021-22 fiscal. Fitch slashes India's growth forecast for 2021-22 to 8 percent from 9.5

Photo: PTI

Fitch cuts India growth projection to 8 per cent for 2021-22 fisca

New Delhi. Fitch Ratings on Tuesday lowered India's growth forecast for FY 2021-22 to 8 percent. The agency had estimated it to be 9.5 percent last month. However, it has not changed its previous estimate of a five percent contraction in the economy during the current financial year. The estimated growth of the Indian economy in 2019-20 was 4.2 percent.

Fitch said in a June update of its global economic scenario that the Indian economy will grow at 5.5 percent in 2022–23. Fitch said, 'The government in India implemented a stringent lockdown of the world to prevent the outbreak of the virus. Efforts are being made to gradually relax it. We have reduced our forecast for 2021 to eight per cent from 9.5 per cent, keeping the policy easing limited and the fiscal weakness already prevailing.

Earlier, S&P had forecast a five per cent contraction in the fiscal year beginning in April and said it would grow by 8.5 per cent in the next financial year. Moody's hopes that the lockdown due to the Corona virus epidemic will reduce India's real GDP by four percent in FY 2020. They have predicted a growth rate of 8.7 percent in 2021 and about six percent next year.

This post was published on July 1, 2020 2:42 am

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