It has also cut the GDP growth forecast for current fiscal to 6.9 per cent from 7.2 per cent projected in December.
Mumbai: Global rating agency Fitch Ratings has cut its India's economic growth forecast to 6.8 per cent for 2019-20 from its previous estimate of 7 per cent on weaker-than-expected economic momentum. However, the rating agency expects growth to be 7.1 per cent in 2020-2021.
“While we have cut our growth forecasts for the next fiscal year (FY20, ending in March 2020) on weaker-than-expected momentum, we still see Indian GDP growth to hold up reasonably well, at 6.8 per cent, followed by 7.1 per cent in FY21,” said Fitch in its Global Economic Outlook. It has also cut the GDP growth forecast for current fiscal to 6.9 per cent from 7.2 per cent projected in December.
“The slowdown has been driven by cooling activity growth in the manufacturing sector and, to a lesser extent, agriculture,” Fitch said.
Pronab Sen, former Chairman of the Indian Statistical Commission told FC, “In agriculture while the prices have fallen, the volumes are normal. So, there is no real weakening in the agri-sector”