New Delhi: Fitch Solutions on Monday reduced its earlier estimate of India’s current financial year growth to 4.9 percent. It had previously estimated it to be 5.1 percent.
The agency has said that it has reduced growth forecasts due to Corona virus impacting supply chain mess and weakening domestic demand. The agency has also reduced India’s fiscal year 2020-21 growth forecast from 5.9 percent to 5.4 percent.
Fitch Solutions, in its latest report on India’s scenario, said, “Fitch Solutions is reducing India’s gross domestic product (GDP) growth forecast for the financial year 2019-20 to 4.9 percent from the previously announced 5.1 percent. At the same time it has been reduced to 5.4 per cent from the earlier 5.9 per cent for the financial year 2020- 21. “India’s GDP growth during the third quarter (October-December) of the current financial year was reduced to 4.7 per cent. It was 5.1 percent in the revised estimates for the second quarter. However, the initial estimate had pegged the second quarter growth at 4.5 percent.
GDP growth has slowed at the government level, with consumption slowing down, a large decline in gross sustainable capital formation, and net export contribution being modest. The agency says that “failing to support the industry in the Budget 2020-2021 will only provide a small relief to the already under-stressed industry.
