On Friday, Fitch Ratings on the Indian economy has said that it has reduced India's growth rate estimate for the current financial year to a 30-year low of 2 percent. Earlier Fitch Ratings had projected India's growth rate for the current financial year at 5.1 percent. Fitch ratings have made this fall in growth rate estimates due to the crisis of the economic slowdown on the global economy and the lockdown caused by the corona virus epidemic. Significantly, to prevent the spread of corona virus in India, a nationwide lockdown has been in force since March 25.
On this estimate, Fitch Ratings said in a statement, 'Fitch is forecasting a global recession this year and recently we have estimated India's growth rate for the current fiscal year ending in March 2021 as last estimate of 5.1%. Has been reduced to 2 percent. This latest estimate of growth is the lowest level in the last 30 years.
In March 2020, Fitch Ratings reduced India's GDP growth estimate to 5.1 percent for the fiscal year 2020-21. Earlier in December 2019, Fitch Ratings had projected the growth rate for the current financial year to be 5.6 percent. Also, the agency said that small, small and medium-sized enterprises and service segments have been the worst affected due to reduced customer demand. It is worth noting that last week, Moody's Investors Service reduced the growth rate estimate for FY2020 from the previous estimate of 5.3 per cent to 2.5 per cent directly.