India's GDP to shrink to 8.5% during 2022-23

- In addition to Omicron, increased fuel prices due to the Russia-Ukraine war reduced GDP from 10.3% to 8.5%.

New Delhi: India's growth rate of gross domestic product (GDP) has been slashed from 10.50 per cent to 7.5 per cent by the ratings agency Fitch, which constantly monitors the economic lines of various countries in the world.

Explaining the reasons for this, the rating agency said that the rise in fuel prices, first as a result of the Covid Omicron and then the Russia-Ukraine war, was the main reason for the slowdown in growth.

The agency also said that India's growth rate is likely to pick up from the June quarter of this year. Fitzgerald also predicted that India's GDP growth rate would increase by 5 per cent to 7.5 per cent during the current financial year. However, on the safe line, it has kept the figure at 4.5 per cent.

Regarding the possible slowdown in India's GDP growth rate, the rating agency said in its "Global Economic Outlook-209" that Kovid Omicron had suffered a major setback in the post-epidemic recovery due to declining global supply. So on the one hand development has stopped. So on the other hand inflation is rising. (Thus the global economy is moving towards a 'stag-flash'.)

The agency added that the Ukraine war and the consequent economic sanctions on Russia have put global energy supplies at risk. It is unlikely that the sanctions will be lifted immediately.

The rating agency also said that when GDP growth was strong in India in the last quarter of December, it was expected that India's GDP (gross domestic product) rate would be above 5 per cent. Which will be higher than its pre-epidemic level. Even so, owning one is still beyond the reach of the average person. (The main reason is the war between Russia and Ukraine.