Fitch cuts India’s GDP growth forecast for fiscal year 23 to 7% from 7.8%

Fitch cuts India’s GDP growth forecast for fiscal year 23 to 7% from 7.8%

MUMBAI (Reuters) – India’s economy is expected to slow, and in a statement released late on Wednesday, Fitch said it would cut the country’s GDP growth forecast for the current fiscal year through March 2023 to 7% from 7.8%.

It also forecast a further slowdown in growth to 6.7% in FY 24 from its previous estimate of 7.4%.

“We expect the economy to slow in light of the global economic backdrop, high inflation and tighter monetary policy,” the rating agency said.

They added: “Inflation declined in August with the decline in prices, but risks to food price inflation remain due to negative seasonality towards the end of this year.”

Since the central bank has said that its future decisions on interest rates will be calibrated, measured and intelligent depending on economic dynamics, Fitch said it expects interest rates to peak in the near future and to remain at 6% throughout the next year.

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