US rating agency Fitch has lowered its growth projection for the Indian economy in 2011-12 to 7 per cent from the earlier estimate of 7.5 per cent on account of sustained inflation,the global slowdown and high domestic interest rates.
Fitchs revision of Indias growth forecast comes less than a week after another ratings agency,Crisil,last week lowered Indias growth projection in 2011-12 to 7 per cent from the earlier estimate of 7.6 per cent.
The agency said the Indian economy is likely to regain the 8 per cent economic growth trajectory only in 2013-14. Indias economic outlook remains challenging as growth is likely to slow against a backdrop of elevated inflation. The economy is likely to remain weighed down by a combination of the weaker global economy and higher domestic interest rates, Fitch said in its report Global Economic Outlook: December 2011.
This has prompted Fitch to revise down its real GDP growth forecast to 7 per cent in FY-12 from 8 per cent earlier, it added. Fitch has also revised its growth forecast for 2012-13 down to 7.5 per cent from 8 per cent earlier and for 2013-14 to 8 per cent.