New Delhi: Global rating agency Fitch Ratings on Thursday said that it expects India’s economic growth to be at 5.5 percent in 2019-20, due to the large squeeze in credit availability emanating from non-bank financial companies (NBFCs).
Accordingly, the global rating agency expects economic growth to be 5.5 percent in 2019-20, before picking up to 6.2 percent in 2020-21 and 6.7 percent in 2021-22.
“Nevertheless, growth is likely to be significantly below its potential over the next year or so,” the agency said.
According to Fitch Ratings, assuming the sluggish pace of lending is maintained throughout the year, total new lending will amount to only 6.6 percent of GDP in the fiscal year 2019-2020, down from 9.5 percent in the previous fiscal year.
However, it noted that recent government measures should gradually improve the flows of credit and nudge up growth.
“Looser global financial conditions are also supportive, with a noticeable pickup in external commercial borrowings in 2019,” the agency said. (IANS)