Fitch Ratings cut India’s GDP growth forecast for FY20 from 7.0% to 6.8%

In its latest Global Economic Outlook (GEO), Fitch Ratings has recently cut India’s economic growth forecast for the financial year FY20 starting April 1, to 6.8% from its previous estimate of 7%, on weaker than expected momentum in the economy. 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. 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% from 7.3%, respectively.