Fitch cut India's GDP prediction for the next fiscal year to 8.5 percent from 10.3 percent on Tuesday, citing rising energy prices and inflation caused by the Russia-Ukraine war. It increased its prediction for GDP growth in the current fiscal year by 0.6 percentage points to 8.7 percent. "However, we have cut our FY 2022-2023 growth prediction to 8.5 percent (-1.8 percentage points) due to considerably higher energy prices," Fitch stated.

It is predicted to be 7% in 2023-24. Fitch noted in its March 2022 Global Economic Outlook that the post-COVID19 pandemic recovery is being harmed by a possibly massive global supply shock that will slow growth and raise inflation. "The Ukraine conflict and economic sanctions against Russia have harmed global energy supplies. Sanctions do not appear likely to be lifted anytime soon "According to the agency. Moody's, another global rating agency, cut India's growth forecast for the calendar year 2022 to 9.1 percent from 9.5 percent previously, citing a high cost of fuel and fertiliser imports as a possible constraint on capital investment.

Russia contributes around 10% of the world's energy, including 17% of natural gas and 12% of oil. "The increase in the price of oil and gas will increase industry expenses and diminish consumers' actual incomes... Increased energy prices are unavoidable "Fitch said in a statement that it had lowered its global GDP growth prediction by 0.7 percentage points to 3.5%.

Centre keeps careful eye on global commodities price changes

US Federal Reserve will go for more aggressive rate hikes to curb inflation: Powell

RBI Governor said - India's economy is in better condition, able to face any challenge"