United States-based credit rating agency Fitch Agency on Wednesday said that India’s growth will slow down to about 6.5% per year between the financial year 2023-’26 following an initial rebound in 2021-’22.
“A combination of supply-side scarring and demand-side constraints – such as the weak state of the financial sector – will keep the level of Gross Domestic Product well below its pre-pandemic path,” Fitch said.
The ratings agency said that India’s recession, caused by the coronavirus pandemic, was among the most severe globally, because of a strict lockdown and limited direct fiscal support. Currently, it said India’s economy was in a recovery phase, which will be supported by the roll out of the coronavirus vaccines. “We expect GDP to expand by 11.0% in FY22 after falling by 9.4% in FY21,” the commentary on the Indian economy said.
In December, Fitch Ratings had revised the country’s Gross Domestic Product for the financial year 2020-’21,…