Fitch Ratings once again has cut India’s economic growth projections to 8.7 per cent for the current financial year (FY) from its earlier forecast of 10 percent. While, it has raised forecast for the gross domestic product (GDP) to 10 per cent for the next FY from its earlier estimates of 8.5 per cent.
In the other hand, the World Bank has retained India’s economy growth for FY22 at 8.3 percent from its June forecast. keeping the projection unchanged, it said, increasing pace of vaccinations will determine India’s economic prospects this year.
Further, Standard & Poor’s rating agency has also recently retained India’s GDP growth forecast at 9.5 per cent for the current FY. While, Icra rating has raised its projections to 9 per cent from 8.5 per cent.
In this regard, Moody’s, recently in its latest report on sovereign overview of Asia-Pacific countries, upgraded its outlook to stable from negative. Moody’s Investors in May, had projected India’s GDP growth at 9.3 percent.
However, RBI too cut India’s growth forecast to 9.5 from 10.5 per cent estimated in RBI’s June forecast. While, it was done before the release of the first quarter GDP figures. India’s economy grew by a record 20.1 per cent in that quarter due to low base of 24.4 per cent fall in the corresponding period of the previous FY.