Fitch slashes India growth forecast to 7.2 pc on reduced credit availability

TIL Desk/Business/New Delhi/ Fitch Ratings Thursday slashed India’s GDP growth forecast to 7.2 per cent for current fiscal, from 7.8 per cent projected in September, citing higher financing cost and reduced credit availability.

In its Global Economic Outlook released Thursday, Fitch estimated India’s GDP growth to be 7 per cent and 7.1 per cent in financial years 2019-20 and 2020-21 respectively. Indian economy grew 6.7 per cent in 2017-18 fiscal.

The 7.2 per cent GDP growth for current fiscal is substantially lower than 7.8 per cent and 7.4 per cent projections made by Fitch in September and June respectively. It is also lower than RBI’s 7.4 per cent growth estimates for this fiscal.