Global rating agency Fitch Ratings has reduced India’s GDP growth forecast from 10 per cent to 8.7 per cent. In June, the rating agency had estimated a growth rate of ten percent during 2021-22. The agency says that due to the problems created by the second wave of Corona, the pace of economic recovery in the country may be slow.
Rating agency said, economic recovery was delayed but now it is on track
The rating agency has estimated the GDP growth rate to be 10 percent during the financial year 2022-23. The agency says that the economic recovery from the second wave of Corona has started late but recovery is happening and it has not derailed. The agency had earlier projected a growth rate of 12.8 per cent for the current financial year but in June it was reduced to 10 per cent. Fitch has said in its Sovereign Credit Overview that India’s ‘BBB-Negative’ outlook suggests that there is uncertainty on the debt front due to the continuing decline in public finances in the country. Such a situation has come due to the economic conditions arising out of COVID-19.
Moody’s downgrades India’s sovereign rating from ‘Negative’ to ‘Stable’, citing improvement in financial sector and faster recovery
‘Inflation will come down but RBI will not change its stand for now’
The rating agency has said that the pace of recovery is building in the country and business activities have returned to pre-COVID levels in the second quarter of the current financial year. Fitch Ratings said inflation will decline. But the RBI will maintain status quo on key bank rates at least till the next financial year. Moody’s had stabilized the country’s sovereign rating outlook from negative a day before Fitch Ratings reduced its GDP growth forecast for the current financial year.