Global rating agency Fitch on Monday slashed its GDP forecast for India for FY18 saying “growth has repeatedly disappointed in recent quarters.”

New Delhi: Global rating agency Fitch on Monday slashed its GDP forecast for India for FY18 saying “growth has repeatedly disappointed in recent quarters.”

This comes when last month Standard & Poor’s (S&P) had refused to toe Moody’s line in upgrading India’s sovereign rating, citing vulnerabilities stemming from country’s sizeable fiscal deficit, weaker government finances and low per capita income.

“The Indian economy picked up in third quarter of 2017, with GDP growing by 6.3 per cent, up from 5.7 per cent  in 2Q17. However, the rebound was weaker than we expected, and we have reduced our growth forecast for the fiscal year to end-March 2018 (FY18) to 6.7 per cent  from 6.9 per cent in the September Global Economic Outlook,” said Fitch.

It said FY19 forecast has been cut to 7.3 per cent from 7.4 per cent.

“Growth has repeatedly disappointed in recent quarters, although this has partly reflected one-off factors including the demonetisation programme of November 2016 and disruptions related to the implementation of the introduction of the GST in July 2017, said the rating agency.