Fitch trims GDP growth forecast to 4.6%

New Delhi: Fitch Ratings on Friday lowered its growth forecast for India to 4.6 per cent for the 2019-20 fiscal from the previous estimation of 5.6 per cent after factoring in significant deceleration in past few quarters due to credit squeeze and deterioration in business and consumer confidence.

It reaffirmed India's rating at 'BBB-' with a Stable Outlook saying the rating balances a still strong medium-term growth outlook compared with similar category peers and relative external resilience stemming from solid foreign-reserve buffers against high public debt, a weak financial sector and some lagging structural factors, including governance indicators and GDP per capita.

The Fitch's FY2019-20 growth forecast is lower than 4.9 per cent projection by Moody's and 5.1 per cent by Asian Development Bank.

The Reserve Bank of India (RBI) has also revised GDP growth forecast to five per cent for 2019-20 from 6.1 per cent projected in October.