For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Fitch Cuts India’s GDP Growth Forecast For FY20 To 5.5%

By Staff
|

On Thursday, Fitch Ratings slashed India's GDP growth forecast to 5.5 percent for the current financial year 2019-20 on account of a large credit squeeze emanating from shadow banks that dragged the country's economic growth to a six-year low.

Fitch Cuts India’s GDP Growth Forecast For FY20 To 5.5%
 

Earlier, in June, Fitch had projected GDP growth at 6.6 percent for FY20. In its latest revision, the international rating agency said that the recently announced measures by the government, that include corporate tax rate cuts, would gradually nudge growth.

The growth projection is significantly lower than the Reserve Bank of India's (RBI) recent estimate of 6.1 percent after the monetary policy meeting in October.

Fitch expects GDP growth to pick up to 6.2 percent in the next financial year (2020-21) and to 6.7 percent in the following year.

In April-June period, growth in the Indian economy decelerated for the fifth consecutive quarter to expand at 5 percent, the lowest since 2013 and lower than the 8 percent GDP growth seen a year earlier.

"Weakness has been fairly broad-based, with both domestic spending and external demand losing momentum," Fitch said. "The Indian economy is being held back by a large squeeze in credit availability emanating from non-bank financial companies (NBFCs)," it added.

Story first published: Thursday, October 24, 2019, 14:51 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more