Corona’s impact on Indian economy for a long time: Fitch

BusinessCorona’s impact on Indian economy for a long time: Fitch

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Corona’s impact on Indian economy for a long time: Fitch

New Delhi: Indian economy will have to bear the effects of corona virus epidemic for a long time. Fitch Ratings said on Thursday that the Indian economy would register a healthy growth of 11 percent in the next financial year (2021-22). But thereafter, India’s gross domestic product (GDP) growth rate will slow down. Fitch estimates that even after the end of this crisis, India’s growth rate will remain below the pre-epidemic level.

Fitch’s report ‘India is on the path of sluggish growth in the medium term’ states that after recording good growth in the next financial year, the growth rate of Indian economy will be sluggish 6.5 percent from FY 2022-23 to 2025-26. In a comment on the Indian economy, Fitch Ratings said, “Demand-side bottlenecks along the supply side … such as India’s GDP growth rate will remain below pre-epidemic levels due to weak financial sector conditions.” ‘

Fitch said the slowdown in India due to the corona virus is the most serious in the world. Such a situation has arisen due to strict lockdown and limited financial support. The rating agency said that the state of the economy is now improving. It will get further support as the vaccine is introduced in the next few months.

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