GDP growth forecaster Fitch Ratings on Tuesday showed a downward trajectory of India’s GDP growth from 10.3 percent to 8.5 percent for FY22-23. The Russia-Ukraine war is a direct impact on the global economy and now energy prices are expected to soar north.
However, with the Omicron virus diminishing phase-wise, and precautionary measures are in place the ground is set for India to show positive signs of growth from June this fiscal year as per Fitch’s predictions.
Fitch in its annual Global Economic Outlook-March 2022 stated that post coronavirus recovery will be hit by a huge scarcity in the supply chain, which will eventually decrease growth and increase inflation.
Fitch said, “While revising the forecast for inflation we have predicted a downward trajectory at 8.5 % in India’s growth for the fiscal year 2022-2023, due to an increase in energy prices”
Having said that Fitch also predicted a tiny bit of GDP growth for the present fiscal by 0.6 percent at 8.7 percent. Fitch further added, “The Russo-Ukraine war and the subsequent sanctions on Russia have jeopardized the entire global economy and have put the energy supply chain at high risk. These sanctions won’t be lifted any time soon and we see inflation hitting soon.”