Fitch Rating predicts Indian economic growth to 6.8 percent | Current Affairs, Current Affairs 2019

Fitch Rating predicts Indian economic growth to 6.8 percent

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Fitch Ratings has predicted the India’s economic growth rate around 6.8 percent for the year 2019-20.

Top rating agency has cut India’s economic growth forecast for the next financial year starting April 1, to 6.8% from its previous estimate of 7%, on weaker than expected momentum in the economy.

Making the annoucement, through its Global Economic Outlook, it said ‘While we have cut our growth forecasts for the next fiscal year (FY20, ending in March 2020) on weaker-than-expected momentum, we still see Indian GDP growth to hold up reasonably well, at 6.8%, followed by 7.1% in FY21’. Fitch Ratings cut India’s FY19 GDP growth forecast to 7.2% from 7.8% on December 6. The rating agency has also cut growth forecasts for FY20 and FY21 to 7% from 7.3% and 7.1 per cent from 7.3%, respectively.

According to Fitch, the RBI, has adopted a more dovish monetary policy stance and cut interest rates by 0.25 percentage at its February 2019 meeting, a move supported by steadily decelerating headline inflation. It had changed the rate outlook and now expect another 25 bp cut in 2019, amid protracted below target inflation and easier global monetary conditions than previously envisaged. On the fiscal side, the budget for FY20 plans to increase cash transfers for farmers.

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