Indian Economy To Contract 10.5% In 2020-21: Fitch

Press Trust of India

08 Sep 2020, 10:54 AM IST

Fitch had earlier projected the country's GDP to contract 5% this fiscal year

Fitch Ratings on Tuesday projected a contraction of 10.5 per cent for India's economy in the current financial year.

Last month, official data showed that the country's gross domestic product (GDP) shrank 23.9 per cent in the April-June period, in one of the sharpest contractions in the world.

That was triggered by one of the most stringent nationwide lockdowns in the world.

"GDP should rebound strongly in 3Q20 (October-December) amid a re-opening of the economy, but there are signs that the recovery has been sluggish and uneven," Fitch said.

"We have slashed our GDP forecast for this fiscal year to (-) 10.5 per cent, a huge revision of (-) 5pp compared to the June Global Economic Outlook (GEO)," it said.

Fitch had earlier projected the country's GDP to contract 5 per cent this fiscal year.