Fitch cuts India’s GDP growth Forecast to 7.8%

June 11, 2022
Current Context: Global rating agency Fitch has cut India’s growth forecast for FY 2023 by 70 basis points to 7.8 percent.
Fitch cuts India’s GDP growth Forecast to 7.8%
  • But it enhanced India’s growth outlook to ‘stable’ from ‘negative’ on the back of reduced risks to India’s economic growth.
  • It has also been observed that India’s growth is expected to be robust in comparison to its peers.
  • Due to its rapid economic recovery and easing of India’s financial sector weaknesses, India withstands global uncertainties, especially the Russia-Ukraine war.
  • Earlier In March, Fitch Ratings had cut India’s growth forecast for FY 2023 to 8.5%. Now it has further cut India’s economic growth due to the inflationary impacts of the global commodity price shock.
  • Fitch forecasts India’s debt-to-GDP ratio to drop to 83% in FY 2023 from a peak of 87.6% in FY 2021.
  • By looking government’s infrastructure push, reform agenda, and easing pressures in the financial sector, Fitch forecasted growth of around 7% between FY24 and FY27.

Question:

Q.1 According to the global rating agency Fitch has cut India’s growth forecast for FY 2023 to ______?
a. 6.2%
b. 7.0%
c. 7.8%
d. 8.2%

Free Exam Resources

Useful material to support your preparation, revision and exam planning.

Continue on BankExamsToday

Revise notes, practice questions and resume anytime.

Meet your mentor

From the Founder

Ramandeep Singh, founder of BankExamsToday

Ramandeep Singh

Banking Educator · Former Banker

Former banker and educator helping aspirants prepare for banking promotion and specialist officer exams with focused, practical guidance.

14+
Years' experience
5,000+
Selections
Ex-BoB
Banking experience