Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Fitch Ratings has slashed India’s growth forecast to 10pc from the prior 12.8pc for the fiscal year owing to slow recovery post the second wave of COVID-19. 


The banking sector was hit the hardest by the second wave of COVID-19 as businesses and revenue generation suffered, reported Fitch.


The banking sector would increase lending to the stressed MSME sector, leading to a further rise in retail borrowings. This would pressure banks, especially those in the public sector, notes Fitch.


Fitch also reported that the second wave of COVID-19 had a less severe impact on business than the first, despite higher infection rates. 


India’s economy had contracted by 24.4pc in the June quarter last year but Fitch had previously expected a rebound to pre-pandemic levels in FY2022. 


The Reserve Bank of India cut India’s growth forecast to 9.5pc earlier and Moody’s had forecasted a growth rate of 9.3pc for FY2022. 


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