Fitch Ratings in its June update of Global Economic Outlook has lowered India's growth forecast for financial year 2021-22 to 8 percent from 9.5 percent projected last month. However, the rating agency retained its projection of Indian economy contracting by 5 percent in the current fiscal (FY21). It projected Indian economy to grow 5.5 percent in 2022-23.
It said ‘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 percent from 9.5 percent in the previous GEO.’
Earlier, in May update to the outlook, Fitch had projected 9.5 percent growth in 2021-22. It had exuded confidence that the Indian economy will bounce back from the prevailing contraction and slowdown largely on the back of the COVID-19 pandemic and projected India's GDP to grow at a healthy rate in the next fiscal year.
