Fitch Ratings cuts India’s FY22 GDP Growth Forecast to 8.4%

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).

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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.

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