Fitch retains India’s growth forecast, flags inflation risks

New Delhi, September 14

Fitch Ratings on Thursday retained India’s growth forecast for the current fiscal at 6.3% saying the Indian economy continues to show resilience despite tighter monetary policy and weakness in exports, but upped year-end inflation projection on El Nino threat.

“The Indian economy continues to show resilience despite tighter monetary policy and weakness in exports, with growth outpacing other countries in the region,” Fitch said, while projecting 6.3% growth for the current fiscal, and 6.5% for next fiscal.

In its September update of the Global Economic Outlook, Fitch, however, said high-frequency indicators suggest that the pace of growth in the July-September quarter is likely to moderate.

Growth in the July-September quarter is likely to moderate as exports continue to weaken, credit growth static and the RBI’s latest bimonthly consumer confidence survey shows consumers becoming a little more pessimistic on income and employment prospects, Fitch said. — PTI 

Global Economic Outlook

• The Indian economy grew 7.8% in the April-June quarter of the current fiscal on strong services sector activity and robust demand
• In its September update of the Global Economic Outlook, Fitch, however, said high-frequency indicators suggest that the pace of growth in the July-September quarter is likely to moderate

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