Added on : 2018-06-13 18:15:36
Rating agency Fitch today raised its GDP growth forecast for the financial year 2018-19 to 7.4% and retained it at 7.5% for 2019-20. The revised GDP growth forecast follows India’s unexpected growth performance in the fourth quarter of the fiscal year 2017-18, which was a whopping 7.7%. Last month, Fitch had refused to upgrade India’s sovereign rating citing high fiscal deficit and banking crisis.
“We have revised up our forecast for 2018-19 growth to 7.4 per cent from 7.3 per cent in March. However, higher financing costs (stemming from monetary tightening and higher market premiums) and rising oil prices should limit the upside to growth,” Fitch said in its Global Economic Outlook. The economy grew at 6.7% in 2017-18 and 7.7% in the January-March quarter. Fitch said the Indian rupee has been one of the worst performing currencies in Asia this year, although the depreciation was more muted than during the 2013 taper-tantrum episode, PTI reported.