Fitch slashes FY23 India growth forecast to 8.5% on high energy prices, inflation

Rating agency Fitch on Tuesday slashed India’s growth forecast for the next fiscal to 8.5 per cent from 10.3 per cent, citing soaring energy prices and rising inflation on account of the Russia-Ukraine war.

It has revised upwards the GDP growth forecast for the current fiscal by 0.6 percentage points to 8.7 per cent. “However, we have lowered our growth forecast for FY 2022-2023 to 8.5 per cent (-1.8 pp) on sharply higher energy prices,” Fitch said. For 2023-24, it is estimated at 7 per cent. In its Global economic Outlook-March 2022, Fitch said the post-COVID-19 pandemic recovery is being hit by a potentially huge global supply shock that will reduce growth and push up inflation.