Fitch cuts India growth forecast to 6.6% for FY20
Commodity Online | June 18 2019
UPDATED 10:24:40 IST

ADB cuts India's GDP growth forecast to 7% for FY20

India’s ONGC establishes 230 MT Crude Oil reserves over last 3-years

Delay in mine auctions could cause spike in Iron Ore price: report

Brazil seeks WTO to set up dispute panel in case against India on Sugar subsidy

Business sentiment in India falls to lowest level in 3 years: survey

Credit rating agency Fitch has lowered India's growth forecast to 6.6% for the current fiscal from 6.8% projected earlier, as manufacturing and agriculture sectors showed signs of slowing down over the past year.

In its latest Global Economic Outlook, the global rating agency retained its GDP growth forecast for the next fiscal (2020-21) at 7.1% and 7.0% for 2021-22.

In the last fiscal, Indian economy grew at a 5-year low pace of 6.8%.

"We see growth for FY 2019-2020 printing at 6.6%, before stepping up to 7.1% in FY 2020-2021 and 7.0% in FY 2021-2022," Fitch said.

India's GDP growth declined for the fourth consecutive quarter in January-March, with the economy expanding by 5.8%, down from a cyclical high of 8.1% in the March quarter of 2018.

"This is the lowest growth outturn in five years. The slowdown over the past year has been driven by steadily cooling activity in the manufacturing sector and, to a lesser extent, agriculture. Weaker momentum has been mainly domestically driven, though export growth has also faltered more recently," Fitch said.

It said the Reserve Bank has cut interest rates by 0.25% in its June meeting - the third cut so far this year- in the face of weak growth momentum and contained inflation.

"We expect another 25 basis point cut later in 2019, which will push the policy repo rate down to 5.50%. Monetary and regulatory easing from the RBI, along with a recovery in portfolio inflows, should support a recovery in credit to the private sector and reverse the drag from the negative credit impulse," Fitch added.

 

Commodity Arrivals Rate
Coconut Oil 30 15850.00
Arecanut 35 23000.00
Sugar 494 3232.00
Rubber 0.08 14500.00

More

×