Covid-19: Fitch cuts India's FY21 GDP growth forecast to 1.8% from 4.6%

Fitch Solutions also anticipated a deeper contraction in fixed investments as businesses choose to cut back on capital expenditure to conserve cash amid elevated economic uncertainty

Fitch Solutions on Monday cut India's economic growth forecast for the financial year 2020-21 to 1.8 per cent. It said that the private consumption is likely to contract due to large-scale loss of income in the face of worsening domestic outbreak of Covid-19.

"Over the past week, we have continued to adjust down our country-specific real GDP growth forecasts on the back of persistent low oil prices and the widening spread of Covid-19. Our forecasts remain fluid and, even despite the recent downward revisions, we believe that the risks remain skewed to the downside," the rating agency said.

For India, it said