Fitch Rating slashes India's GDP growth forecast to 5.5% for FY20

Weakness has been fairly broad-based, with both domestic spending and external demand losing momentum, Fitch said

New lending as a proportion of gross domestic product (GDP) may dip to 6.6 per cent this fiscal year from 9.5 per cent in 2018-19 owing to a large squeeze in credit from non-banking financial companies (NBFCs).

These estimates assume that the sluggish pace of lending is maintained throughout the year, according to Fitch Rating.

The Indian economy decelerated for the fifth consecutive quarter in April-June (June quarter). GDP expanded by a meagre 5 per cent yoy, down from 8 per cent a year earlier. This is the lowest growth since 2013. Weakness has been fairly broad-based, with domestic spending