Fitch Ratings cut India’s FY19 GDP growth forecast to 7.2 percent from 7.8 percent on December 6. The rating agency has also cut growth forecasts for FY20 and FY21 to 7 percent from 7.3 percent and 7.1 percent from 7.3 percent, respectively.
The cut comes after India’s GDP growth softened quite substantially in Q3 FY19, growing 7.1 percent year-on-year (YoY) after 8.2 percent in the previous quarter. Consumption was also at the weak spot, falling to 7 percent from 8.6 percent, though still growing at a healthy rate, Fitch said in its report.
On December 5, the Reserve Bank of India (RBI) had projected FY19 GDP growth at 7.4 percent (7.2-7.3 percent in H2) as in the October policy and at 7.5 percent for H1 FY20, with risks somewhat to the downside.