An international rating agency has upgraded the GDP growth of India. Fitch Ratings, an international agency has revised India’s GDP growth. Fitch Ratings has updated India’s GDP growth to 12.8%t for the fiscal year beginning April 1. Earlier it is estimated as 11%.
“India’s second half of 2020 rebound also took GDP back above its pre-pandemic level and we have revised up our 2021-2022 forecast to 12.8 percent from 11.0 percent. Nevertheless, we expect the level of Indian GDP to remain well below our pre-pandemic forecast trajectory,” said latest Global Economic Outlook (GEO) released by Fitch Ratings.
“India’s recovery from the depths of the lockdown-induced recession in 2Q20 (calendar year) has been swifter than we expected. The rapid pace of expansion at the end of 2020 was powered by falling virus cases and the gradual rollback of restrictions across States and Union territories”, said the Global Economic Outlook .
The rating agency however said an impaired financial sector is likely to keep the provision of credit tight, limiting investment spending.