Fitch trims Indian economy growth forecast; sees GDP at 8% for FY22

Fitch has retained its forecast that the Indian economy is set to contract by 5% in the current fiscal FY21.

Jul 01, 2020 09:07 IST India Infoline News Service

As India enters in the Unlock-2 phase with lockdown extended till July 31 for hot zones, Fitch Ratings has trimmed down its forecast for the country's growth. Fitch projects the Indian economy to record 8% growth in fiscal FY22.

This is lower compared to an earlier estimate of 9.5% that Fitch projected in May month for the fiscal.

In its latest Global Economic Outlook report, Fitch says, "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% from 9.5% in the previous GEO."

However, Fitch has retained its forecast that the Indian economy is set to contract by 5% in the current fiscal FY21. 

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