Fitch downgrades India’s FY20 GDP growth forecast to 5.5%

Fitch downgrades India’s FY20 GDP growth forecast to 5.5%

Gross Domestic Product

Gross Domestic ProductFitch Ratings that earlier projected India’s Gross Domestic Product (GDP) growth at 6.6 percent for the fiscal year that began on April 2019, has now slashed it 5.5 percent for the current fiscal.

The report said that a large credit demand raised by the shadow banks has pushed economic growth to a six-year low. However, recent government initiatives will level-up economy. It said that a cut in corporate tax rates will gradually boost growth.

The projection is lesser than 6.1 percent estimation given by the Reserve Bank of India (RBI) in early October.

The report also said that the GDP expansion will increase to 6.2 percent in the next financial year (2020-21) and to 6.7 percent in the year after.

“Weakness has been fairly broad-based, with both domestic spending and external demand losing momentum,” Fitch said. “The Indian economy is being held back by a large squeeze in credit availability emanating from non-bank financial companies (NBFCs).”

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the NBFCs and Insurance industry. Join Us for Elets FSI Virtual Conclave and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.

X
Subscribe Newsletter