After contracting in the current financial year, India’s economy has been forecasted to bounce back with a sharp growth rate of 9.5 percent next year, provided that it avoids further deterioration in financial sector health, Fitch Ratings said on Wednesday.
The coronavirus pandemic will shrink an already slowing GDP growth in 2020-21 at the rate of 5 percent, Fitch Ratings said.
“The pandemic has drastically weakened India’s growth outlook and laid bare the challenges caused by a high public-debt burden,” Fitch Ratings said in its APAC Sovereign Credit Overview released on Wednesday.
“After the global crisis, India’s GDP growth is likely to return to higher levels than ‘BBB’ category peers, provided it avoids further deterioration in financial sector health as a result of the pandemic,” it said forecasting a 9.5 percent real GDP growth in the next year 2021-22.
