Fitch cut its GDP estimate for the current year to 7.5 percent

(PTI) New delhi date. 3

Fitch Ratings has downgraded India's GDP estimate for the current financial year 2021-2 to 7.5 per cent. However, Fitch has projected India's GDP to be 10 per cent for FY 205-6. The rating agency further said that the second wave of Corona has delayed the recovery of the economy but the economy has not derailed.

Fitch said in its credit overview that India's BBB- / negative rating reflects the pressure on the debt sector after India's rapid decline in the public sector due to the epidemic shock.

Fitch has said it has slashed India's GDP estimates to 7.5 per cent for FY 2021-2. Earlier in June, Fitch had projected India's GDP to grow at 10 per cent in the current financial year.

Earlier in June, Fitch had slashed its GDP estimate from 12.5 per cent to 10 per cent. Last year, India's GDP fell by 7.5 per cent. While in the financial year 2015-20, India's GDP was four per cent.

Fitch said the second wave of Corona did not derail India's economic recovery but delayed it. For the same reason, we have increased our GDP estimate for the financial year 205-6 from 7.5 per cent to 10 per cent.