Fitch Ratings on Thursday slashed its FY22 growth forecast for India to 8.7% from 10% estimated in June anticipating that the severe impact of the second wave of coronavirus pandemic would delay economic recovery in Asia’s third largest economy.
“We further lowered India’s GDP forecast for the fiscal year ending March 2022 to 8.7% from 10.0% in June as a result of the severe second virus wave. In our view the impact of the second wave was to delay rather than derail India’s economic recovery. High frequency indicators point to a strong rebound in 2Q FY22, as business activity has again returned to pre-pandemic levels,” Fitch said in its Asia Pacific Sovereign Credit Overview.
The World Bank and Moody’s have projected Indian economy to grow at 8.3% and 9.3% respectively while the Reserve Bank of India has pegged GDP growth to 9.5% for FY22.