Fitch reduced India’s growth rate forecast, rising interest rates and impact of global slowdown
The agency has estimated that the country’s economy can grow at the rate of 7 percent in the current financial year. Earlier in June, 7.8 percent growth was estimated for India.
Fitch cuts India’s growth forecast
Fitch Ratings has slashed India’s growth forecast for the current financial year. According to the rating agency, rising interest rates at the domestic level and fears of recession around the world will have a negative impact on the growth rate. The agency has estimated that in the current financial year country’s economy may increase at the rate of 7 percent. Earlier in June, an estimate of 7.8 percent growth was given for India. The agency has cut growth projections for India as well as for the world. According to the agency, many such signs are being seen around the world which will have a negative impact on all the economies. For this reason, the growth projections have been cut.
What does the Fitch report say?
The report said that along with rising inflation, the increase in interest rates and the economic slowdown around the world may also slow down the pace of the domestic economy. The agency has also cut the estimates for the next financial year and said that in the financial year 2023-24, the economy can register a growth of 6.7 percent against 7.4 percent. At the same time, the report said that due to supply concerns and inflation, the global economy will grow at 2.4 percent in the year 2022, which is half a percent tax from the previous estimates. At the same time, in the year 2023, the world economy will grow at a rate of only 1.7 percent, in which there has also been a cut of 100 basis points from the previous estimates. According to the report, there are many factors like commodity prices, strict policy of central banks, Russia Ukraine crisis, Kovid restrictions in China which are slowing down the growth.