Growth forecast downgraded to 7.2%

Fitch Ratings slashed India’s GDP growth forecast to 7.2 per cent for current fiscal, from 7.8 per cent projected in September, citing higher financing cost and reduced credit availability.

In its Global Economic Outlook, Fitch estimated India’s GDP growth to 7 and 7.1% in financial years 2019-20 and 2020-21 respectively. Indian economy grew 6.7% in 2017-18 fiscal. The 7.2% GDP growth for current fiscal is substantially lower than 7.8 and 7.4% projections by Fitch in September and June respectively. It is also lower than RBI’s 7.4% growth estimates for this fiscal.

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