New Delhi, Sep 8: Fitch Ratings on Tuesday projected a massive 10.5 per cent contraction of India's economy in the current financial year. India recorded one of the sharpest gross domestic product (GDP) contractions in the world in April-June.
India's GDP shrank by a staggering 24 per cent year-on-year amid the imposition of one of the most stringent global nationwide lockdown.
"GDP should rebound strongly in 3Q20 (October-December) amid a re-opening of the economy, but there are signs that the recovery has been sluggish and uneven," Fitch said.
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"We have slashed our GDP forecast for this fiscal year to (-) 10.5 per cent, a huge revision of (-) 5pp compared to the June Global Economic Outlook (GEO)," it said. Fitch had earlier projected India's GDP to contract 5 per cent this fiscal.
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