Fitch Ratings has cut its growth forecast for India to 7 percent for the current financial year (FY23) from the previous estimate of 7.8 percent. It also slashed gross domestic product (GDP) growth forecast for the next fiscal year (FY24) to 6.7 percent from the earlier estimate of 7.4 percent.
Its latest growth estimate for FY23 is lower than the Reserve Bank of India's (RBI) forecast of 7.2 percent. It stated ‘We expect the economy to slow given the global economic backdrop, elevated inflation and tighter monetary policy.’
Besides, since the central bank has said its future rate decisions would be calibrated, measured and nimble depending on economic dynamics, Fitch said it expects policy rates to peak in the near future and remain at 6 per cent all through next year.
