The international credit ratings firm Fitch Ratings is seeing rupee to again scale down to 75 per dollar mark by the end of the current financial year. Also, on the sidelines, due to country's high borrowing cost as well as liquidity condition, the growth forecast for the FY19 has been brought down from 7.8% to 7.2%.
Also, the forecast for FY20 and FY 21 has been narrowed down to 7% and 7.1% respectively. In its December policy review meet, RBI for the FY18-19 has projected growth at 7.4% (7.2-7.3% in case of H2), with a slightly lower risk expectations.
"The demand outlook as reported by firms polled in the Reserve Bank's IOS has improved in Q4. Based on an overall assessment, GDP growth for 2018-19 has been projected at 7.4 percent (7.2-7.3 per cent in H2) as in the October policy, and for H1:2019-20 at 7.5 percent, with risks somewhat to the downside," RBI MPC said.
"India's ratings balance a strong medium-term growth outlook and favourable external balances relative to peers with weak fiscal finances, a fragile financial sector and some lagging structural factors," Fitch had said in a statement.
Meanwhile, India's sovereign rating by Fitch Ratings is kept unchanged at the lowest investment grade of 'BBB-minus' with stable outlook.