Indian Economy To Bounce Back, To Grow At 9.5 Per Cent In Next Financial Year: Fitch Ratings

In a positive development, US credit rating agency Fitch Ratings on Wednesday (10 June) stated that Indian economy India's economy is likely to bounce back with a sharp growth rate of 9.5 per cent next financial year provided it avoids further deterioration in financial sector health, reports Times of India.

Fitch Ratings, the world’s third-largest credit rating agency in the world, also forecast a 5 per cent contraction in the GDP in the current financial year due to the impact of coronavirus pandemic.

"The pandemic has drastically weakened India's growth outlook and laid bare the challenges caused by a high public-debt burden," Fitch Ratings repotedly said in its APAC Sovereign Credit Overview released on Wednesday.

"After the global crisis, India's GDP growth is likely to return to higher levels than 'BBB' category peers, provided it avoids further deterioration in financial sector health as a result of the pandemic," the rating agency added.

Notably, S&P Global Ratings on Wednesday maintained India's sovereign credit ratings, affirming its ''BBB-'' long-term and ''A-3'' short-term unsolicited foreign and local currency ratings.

Besides, S&P Global Ratings said India's outlook on the long-term rating is stable.