Fitch Ratings has slashed India’s economic growth forecast in the financial year 2021-22 (FY22) to 8.4 per cent and raised the growth projection to 10.3 per cent for FY23, compared to October 2021 rating projections of 8.7 per cent (FY22) and 10 per cent (FY23).
In the December report:
- India’s GDP grew 11.4 per cent in the Q2 FY22 over the April-June quarter of FY22 on a seasonally adjusted basis. The economy has contracted 4 per cent in the April-June quarter in FY22 over the fourth quarter of FY23.
- Indian economy had contracted by 7.3 per cent in FY21 due to COVID-19.
- The rating agency has expected the headline inflation to average 4.9 per cent in 2022 and 4.2 per cent in 2023, from 5 per cent in 2021.
- In India, less than one-third of the population is fully vaccinated and the new Omicron variant poses a new risk to the recovery.
Important takeaways for all competitive exams:
- Fitch Ratings President: Ian Linnell;
- Fitch Ratings Headquarters: New York, United States.