January 2020 \ News \ Business and governance
Fitch lowers India’s economic growth to 4.6% in FY20

Global ratings agency Fitch Ratings in December ...

The FY20 deficit target has already been exceeded by end-October due to weak revenue intake, and a deceleration of nominal quarterly growth suggests further revenue pressure for the rest of the financial year. “The Government has indicated that its corporate tax rate cut could lower revenue by 0.7 per cent of GDP in FY20 and hopes to finance spending by more aggressive asset divestments, including Air India and Bharat Petroleum Corporation Limited,” the ratings agency said. “We believe there is a risk of more significant fiscal loosening in the event of continued weak GDP growth, for example, in the context of lingering problems in the NBFC sector,” it said.