New Delhi: – The Indian economy has taken a major hit because of the Coronavirus pandemic. But the international credit Rating company ‘Fitch Ratings’ claimed that India would recover from this jolt and the Indian economy will progress at 9.5% in the next year. Moreover, Fitch has upgraded the credit rating of the Indian economy. Another credit rating agency, S&P Global Ratings, also expressed confidence in the Indian economy.
Not only the Indian economy, but all the economies in the world are also facing a crisis, because of the Coronavirus pandemic. It is claimed that the leading economies of the world will not recover from this jolt in the near future. But two leading international credit rating companies, Fitch and S&P, have indicated that the Indian economy will bounce back. The Indian economy had slowed down even before the onset of Coronavirus. This had its reasons. Challenges had increased as government borrowing had increased. Fitch said that the Coronavirus made the crisis even more serious. Therefore, Fitch has projected a decline in the Indian economy of 5% for this fiscal.
Fitch has said in its report that the Indian economy will rapidly progress again. If there are no crises in the financial sector, the Indian economy will attain a growth rate of 9.5%. All the economic activities had come to a standstill since 25th March, after imposition of the lockdown. These are slowly restating now. But the restrictions have not been completely removed. The economy will need some time to gather momentum.’
The Reserve Bank of India took some important steps to provide an impetus to the economy. The cut was announced in Interest rates. The credit policies were eased. Moreover, the government announced an economic package equal to 10% of the national GDP. Fitch has also referred to these developments in its report. Fitch said that the growth seen in the Indian economy would be better than the existing ‘BBB’ rating.
Following Fitch, another global credit rating institution expressed confidence in the Indian economy. S&P has not changed any Indian credit ratings. S&P claimed that economic stability would come to India and there will be an improvement in 2021. S&P too, projected a decline of 5% in the growth rate of the Indian economy, for the current fiscal. But it is said that the Indian economy is performing better than the average rating of ‘BBB’ awarded by S&P. S&P also said that if India implements economic reforms, the Indian growth rate will be better than other countries.