New Delhi: Fitch Ratings on Tuesday lowered India’s growth forecast for FY 2021-22 to eight per cent. The agency had estimated it to be 9.5 per cent last month. However, it has not changed its previous estimate of a five per cent contraction in the economy during the current financial year (2019-20). The estimated growth of the Indian economy in 2019-20 was 4.2 percent.
Fitch said in a June update of his global economic scenario that the Indian economy will grow at 5.5 per cent 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 in view of the limited policy easing and the already weak weakness on the fiscal front.
