Fitch projects Indian economy to contract 10.5 per cent this fiscal

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.