Fitch cuts India’s FY19 GDP growth forecast to 7.2% from 7.8%, sees Re at 75/$ by 2019-end

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.