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Fitch Solutions slashed its estimate for India’s GDP growth in the fiscal starting April 1 to 4.6 per cent due to weaker private consumption and contraction in investment amid coronavirus outbreak, costing economies around the globe.
The growth estimate for 2020-21 fiscal (April 2020 to March 2021) compares with a 4.9 per cent forecast in the current 2019-20 that ends on Tuesday.
“At Fitch Solutions, we are revising India’s FY2020/21 (April'”March) real GDP growth forecast to 4.6 per cent, from 5.4 per cent previously, which reflects our view for a slowdown from our FY2019/20’s estimate of 4.9 per cent,” the rating agency said.
It said despite the Rs 1.7 lakh crore economic package announced last year, private consumption growth would come under strong headwinds over the coming months.
The lower growth estimate, it said, is “due to weaker private consumption and a contraction in investments, although a higher net exports contribution and higher government consumption should help blunt the economic blow from Covid-19”.
