Fitch cuts India growth forecast

NEW DELHI: Fitch Ratings on Thursday cut India’s GDP growth forecast to 7.2% for the current fiscal, from 7.8% projected in September, citing higher financing cost and reduced credit availability. In its Global Economic Outlook, Fitch estimated India’s GDP growth to be 7% and 7.1% in financial years 2019-20 and 2020-21, respectively. Indian economy grew 6.7% in 2017-18 fiscal. The 7.2% GDP growth for current fiscal is substantially lower than 7.8% and 7.4% projections made by Fitch in September and June, respectively. “We have lowered our growth forecasts on weaker-than-expected momentum in the data (GDP), higher financing costs and reduced credit availability. We now see GDP growth at 7.2% in the fiscal year ending March 2019, followed by 7% in FY20 and 7.1% in FY21,” Fitch said. PTI