Aatmja Kumari(Intern Journalist): Rating agency Fitch Solutions has forecast a decline in India’s fuel demand. Fitch Solutions estimates that India’s fuel demand may decline by 11.5 percent in the year 2020. The reduction in fuel demand estimates is certainly not a good sign for the country’s economy.
Fitch has raised its estimate of a decline in the country’s fuel demand amid the weakening of India’s economic scenario.
Economists at the rating agency had forecast an 8.6 percent slowdown in the country’s real GDP (real GDP) in the current financial year i.e. 2020-21. Earlier he had predicted a 4.5 percent slowdown in the country’s GDP.
The rating agency issued a statement on Saturday.
Accordingly, the country’s fuel demand has been widely affected and both industrial and consumer fuel demand has come down. Earlier, the rating agency had predicted a 9.4 percent shortfall in the country’s fuel demand this year, but Fitch has raised this estimate after the country’s economic outlook weakened.
According to Fitch Solution, the Indian economy is expected to grow at five percent in 2021 and 2022. According to the agency, economic activity will pick up once the epidemic is controlled. Significantly, in the first quarter of the current financial year, the country’s GDP has registered a slowdown of 23.9 percent. During this period, the slowdown was witnessed due to the severe impact of industrial activity due to the nationwide lockdown imposed to prevent the spread of the coronavirus pandemic.
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