Advertisement

HindustanTimes Thu,21 Aug 2014

Fitch slashes India growth forecast to 4.8% for FY '14

PTI  New Delhi, September 20, 2013
First Published: 15:03 IST(20/9/2013) | Last Updated: 21:57 IST(20/9/2013)

Fitch Ratings cut India's growth forecast for the current financial year to 4.8 %, saying weak demand is a large drag on the economy.

Advertisement

The new estimate compares with projections of 5.7 % made in June and 7 % in September, underlining the "severity of the growth shock," the rating agency said in its 'Global Economic Outlook' report released on Thursday.

Fitch said prospects of a swift economic turnaround have been further dented by a 20 %  fall in the domestic currency since the end of May due to increased concerns over the country's large current account deficit.

The sharp cut in the growth forecast comes when the country faces challenges such as slowing growth, exchange-rate woes and concerns about the current account deficit.

India's economy expanded at a 4.4 % pace in the April-June quarter compared with 4.8% in January-March.

"Demand is weak, both externally and domestically, which is a large drag on the economy," the agency said Fitch also cut India's growth rate projection for FY'15 to 5.8 % from the June forecast of 6.5 %.

In September 2012, the company had projected a growth of 7.5 % for FY'15.

Last week, the Prime Minister's economic advisory council had revised its growth forecast for the current financial year to 5.3 % from 6.4 % projected earlier.


Advertisement
more from Business

Indian firms tool up for defence orders on Modi's 'Buy India' pledge

Some of India's biggest companies are pouring billions of dollars into manufacturing guns, ships and tanks for the country's military, buoyed by the new government's commitment to upgrade its armed forces using domestic factories.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved