Fitch cuts India's GDP growth to 4.6% as credit crunch cripples economy

The rating agency sees moderate fiscal slippage, retains sovereign rating and outlook

Fitch Ratings on Friday cut India’s economic growth forecast to 4.6 per cent from its earlier projection of 5.6 per cent for the financial year 2019-20 (FY20) as credit squeeze and deterioration in business and consumer confidence over the past few quarters hurt growth.

The move includes the expectation of moderate slippage in the fiscal deficit target of 3.3 per cent of gross domestic product (GDP) in FY20, it said in a statement.

Fitch, however, retained India’s sovereign rating at the lowest investment grade of ‘BBB-’ and outlook at stable.

The rating agency expected the Reserve Bank of India (RBI)