New Delhi: Fitch Ratings has predicted that India’s economic activity may shrink by 5 percent in the financial year ending 31 March 2021. Let us know that due to measures like imposing strict lockdown from 25 March 2020, these situations are arising. According to Fitch rating estimates, there may be a 9.5 percent jump in economic activity in FY 2022. Fitch Ratings says that human and health-related needs have not been given much attention.
Although the government has shown restraint in spending so far in view of the burden of the public debt burden. According to our estimates, the government is spending about 1 percent of GDP on additional relief work.
The humanitarian and health needs have been pressing, but the government has shown expenditure restraint so far, due to the already high public-debt burden going into the crisis, with additional relief spending representing only about 1% of GDP by our estimates: Fitch Ratings https://t.co/oTun3lgo18
— ANI (@ANI) June 18, 2020
The Indian economy will improve in the next financial year 2021-22.
Let us tell you that the rating agency had said in the May Global Economic Outlook (GEO) that the Indian economy will improve in the next financial year 2021-22 and it will grow by 9.5 percent Rate. Fitch estimates that India’s growth rate will be 3.9 percent in the last financial year 2019-20. The rating agency has also cut its estimate of global GDP growth, but at the same time said that the decline in global economic activity is now ending gradually. Fitch said that the maximum reduction has been done in India’s growth rate.
In the current financial year, there will be a huge drop of five percent in the Indian economy. The Indian economy was earlier projected to grow by 0.8 percent. The rating agency said that the main contribution to the decline in global GDP in 2020 will be from emerging markets other than China. While growth rates in India and Russia will fall by five percent, it will fall by 6-7 percent in Brazil and Mexico.