Fitch Ratings cut India’s economic growth forecast to 8.4 per cent, from the previous 8.7 per cent for the current fiscal year (2021-22, or FY22) on Wednesday.
The rating agency said risks to recovery remain, especially in the near term, given that less than one-third of the population is fully vaccinated. The newly discovered Omicron variant has added to the risk, it said.
However, the rating agency said the economy staged a strong rebound in the second quarter of FY22 from the Delta variant-induced sharp contraction. According to its estimates, gross domestic product (GDP) rose a sharp 11.4 per cent quarter-on-quarter in seasonally adjusted terms after slumping by 12.4 per cent in the first quarter.
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