- Fitch Ratings projected India’s medium term growth to slow down to 6.5% from FY23 onward, after the initial rebound to 11% in FY22, as the economy suffers lasting damage from the pandemic.
- The Supply-side potential growth will be reduced by a slowdown in the rate of capital accumulation as the investment has recently fallen sharply and is likely to see only a subdued recovery.
- The agency downgraded its projection of supply-side potential growth to 5.1% annually over the five-year period from 2020-25 compared to its pre-pandemic expectation of 7%.
- Fitch retained its forecast of a 9.4% contraction in the ongoing fiscal, higher than the -7.7% growth projected by the government in its first advance estimates of gross domestic product (GDP).