Fitch revises India's FY21 GDP contraction forecast
Published On: Tuesday, December 8, 2020 | By: Team KnowMyStock
Fitch Ratings today(8th December 2020) raised India's GDP forecast to -9.4 percent in the current fiscal year to March 2021 from a previously projected contraction of 10.5 percent after the economy staged a sharper rebound in the second quarter. In its Global Economic Outlook, Fitch said the coronavirus recession has inflicted severe economic scarring and the country needs to repair balance sheets and increase caution about long-term planning. "We now expect GDP to contract 9.4 percent in the fiscal year to end-March 2021 (FY21) (+1.1 percentage point), followed by +11 percent growth (unchanged) and +6.3 percent growth (+0.3pp) in the following years," the rating agency said. The projections compare to a GDP growth of 4.2 percent in 2019-20 (April 2019 to March 2020) fiscal and 6.7 percent annual expansion between 2015 and 2019.
In September, Fitch had sharply lowered its forecast for India's GDP to a contraction of 10.5 per cent in current fiscal 2020-21 (FY21) versus its previous estimate of 5 per cent contraction.
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