NEW DELHI: Fitch Ratings on Friday said it has slashed India’s growth forecast for the current fiscal to a 30-year low of 2 per cent — down from the 5.1 per cent projected earlier. This downgrading is done in the context of the economic recession gripping the national as well as global economy following the worldwide lockdown as part of efforts to check the Covid -19 pandemic.
The initial disruptions to regional manufacturing supply chains from a lockdown in China, as Covid spread, have now broadened to include local discretionary spending and exports even as parts of China return to work. “Fitch now expects a global recession this year, and recently cut our GDP growth forecast for India to 2 per cent for the fiscal year ending March 2021 after lowering it to 5.1 per cent previously, which would make it the slowest growth in India over the past 30 years,” it said in a statement.
Last week, Moody’s Investors Service sharply cut India’s growth forecast for calendar 2020 to 2.5 per cent from 5.3 per cent estimated earlier.—Agencies, IHN-NN
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