Fitch Ratings | Indian economy projected to decline by 10.5% in FY 2020-21

 

Fitch Ratings has projected a steep 10.5 per cent drop in the Indian economy in the current financial year 2020-21. India's gross domestic product (GDP) declined by 23.9 per cent in the first quarter (April-June) of the current financial year. It is one of the highest figures of decline in major economies of the world. A strict lockdown was imposed in the country because of the Coronavirus epidemic. This is considered to be a major reason for the decline in the economy.

 

Fitch Ratings said on Tuesday that there will be an improvement in GDP in the third quarter of the current financial year i.e. October-December. However, there are clear signs that the pace of recovery in the economy will remain sluggish and uneven.

 

Fitch said that we have revised our estimate of GDP for the current fiscal year to -10.5 per cent. In comparison to the global economic scenario released in June, India's economy has been projected to decline by five per cent. Fitch had earlier projected a five per cent decline in India's GDP in the current financial year.

 

According to Fitch Ratings, the COVID-19 epidemic has had a profound impact on India's economy. This has weakened the growth outlook for the current year. The epidemic has brought many challenges. The debt burden has increased.

 

In view of this, experts are demanding that a second relief package should come for the economy. The government may bring a second relief package, but it may not happen until the corona vaccine arrives in the market.