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Slowdown in Manufacturing-Agri sectors
Fitch has lowered India’s growth forecast to 6.6% for the current fiscal (2019-2020) from 6.8% projected earlier, citing slowdown in the manufacturing and agriculture sectors over the past year.
But it has kept the GDP growth forecast for 2020-21 at 7.1% and 2021-22 at 7%.
In 2018-19, the Indian economy grew at 6.8%, a 5-year low.
“We see growth for FY 2019-2020 at 6.6%, up 7.1% in 2020-2021 and 7% in 2021-2022,” Fitch said.
The GDP growth declined for the fourth consecutive quarter in January-March to a growth of 5.8% from a cyclical high of 8.1% in March quarter of 2018.
Manufacturing activities have cooled while agriculture sector to some extent has been slower, noted the global rating agency.
Fitch expects Reserve Bank of India to make another 25 basis-point cut later in 2019, having cut 0.25% in June meeting. fiinews.com
