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Fitch Slashes India’s Growth Forecast For FY22 to 8%; Projects Contraction at 5% For FY21

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India growth projection to 8 pc for FY22On June 30, 2020, Fitch Ratings Inc., an American credit rating agency in its June 2020 update of Global Economic Outlook (GEO), has lowered India’s growth forecast for FY 2021-22 to 8% from 9.5 % projected in may 2020 due to the toughest lockdown imposed by the central government to prevent the outbreak of Coronavirus (COVID-19).
However, Fitch has not made any change in its previous estimate of a – 5% in the economy during the current financial year (FY 2020-21).

  • Global Projections: Fitch has also predicted growth in the global economy at 4.9 % in 2021& in 2022 it is estimated to be 3.4 %.

Past & future estimated growth rate:

The projected growth rate of Indian economy in 2019-20 is 4.2 % &  will grow at 5.5 % in 2022-23.
The agency has forecast a 13.8 % decline in the economy in the July-September quarter 2020 as compared to 0.3 % in April-June quarter 2020.

Other agencies estimates:

Earlier, S&P (Standard & Poor) had forecast – 5% in the Indian economy in the current financial year (FY21) & an increase of 8.5 % in FY 22.
At the same time, rating agency Moody’s has forecast – 4% in the economy in the 2020 due to the COVID-19 epidemic & around 8.7% in the 2021.

About Fitch Ratings:
Headquarters– New York, US
President– Ian Linnell