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.
"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.