Fitch Ratings on Tuesday proposed India’s GDP (gross domestic product) growth forecast for the fiscal year 2021 to 10.5 per cent from 5 per cent. Fitch had forecast a 5 per cent growth in June this year. That is, where earlier GDP growth was considered to be -5% due to coronavirus epidemic and lockdown, now it has risen to -10.5%. Fitch Ratings has stated in its statement that economic activity has not returned to normal due to limited financial support and a weak financial system.
However, Fitch’s Indian unit India Ratings is more disappointed about the growth of the Indian economy. In a report released on Tuesday by India Ratings, India’s GDP will decline by 11.8 per cent in the fiscal year 2021. It had previously estimated a weakness of 5.3 per cent.
According to the latest estimates by Fitch and India Ratings, these figures are the lowest in recent times. For the first time in the history of India, GDP had predicted such a huge deterioration. Earlier in 1980, GDP growth fell by 5.2 per cent.