India's economy to slow down to 6.5% in medium term after 11% rebound in FY22: Fitch

by Nidhi Bhati

Fitch Ratings has expressed concern over India’s growth story stating that country’s coronavirus-induced recession has been among the most severe in the world, amid a stringent lockdown and limited direct fiscal support. After an initial strong rebound in 2021-22 where in the economy is projected to expand by 11 per cent, Fitch is expecting the growth to slow down to around 6.5 per cent a year over 2022-23 to 2025-26. A combination of supply-side scarring and demand-side constraints such as the weak state of the financial sector will keep the level of GDP well below its pre-pandemic levels, it said.

References
1. https://economictimes.indiatimes.com/news/economy/indicators/indias-medium-term-growth-to-slow-to-around-6-5-after-initial-rebound-fitch/articleshow/80263442.cms
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
7.9 -3.6
Consumer Sentiments Index
Base September-December 2015
53.2 0.0
Consumer Expectations Index
Base September-December 2015
54.8 0.0
Current Economic Conditions Index
Base September-December 2015
50.7 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Mar 20 Jun 20 Sep 20 Dec 20
New projects 3.80 0.83 1.05 0.86
Completed projects 1.76 0.25 0.72 0.49
Stalled projects 0.73 0.11 0.08 0.30
Revived projects 0.42 0.68 0.36 0.08
Implementation stalled projects 10.18 0.09 0.07 0.12
Updated on: 16 Jan 2021 8:28PM
Quarterly Financials of Listed Companies
(% change) Mar 20 Jun 20 Sep 20 Dec 20
All listed Companies
 Income -5.0 -27.6 -6.2 6.7
 Expenses -1.9 -27.9 -10.1 2.7
 Net profit -48.9 -40.2 45.2 26.9
 PAT margin (%) 2.3 5.3 8.3 21.4
 Count of Cos. 4,355 4,347 4,310 64
Non-financial Companies
 Income -9.0 -37.4 -10.4 7.0
 Expenses -4.9 -37.6 -14.0 2.9
 Net profit -50.1 -55.8 29.9 26.9
 PAT margin (%) 3.2 4.5 8.1 21.7
 Net fixed assets 13.3 5.9
 Current assets 3.6 0.8
 Current liabilities 6.2 -2.8
 Borrowings 15.9 8.1
 Reserves & surplus 1.3 4.5
 Count of Cos. 3,239 3,235 3,213 44
Numbers are net of P&E
Updated on: 16 Jan 2021 8:28PM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.4 13.5 0.2
 Expenses 9.9 13.8 0.5
 Net profit -41.0 17.9 -11.9
 PAT margin (%) 2.0 2.2 3.9
 Assets 10.9 9.5 9.2
 Net worth 7.4 8.6 4.8
 RONW (%) 3.4 4.0 5.7
 Count of Cos. 29,264 28,548 9,649
Non-financial Companies
 Income 8.6 14.1 -2.6
 Expenses 8.8 14.3 -1.8
 Net profit -9.5 22.0 -23.7
 PAT margin (%) 2.7 3.0 4.1
 Net fixed assets 7.2 5.4 13.0
 Net worth 6.1 8.3 2.1
 RONW (%) 5.6 6.7 7.2
 Debt / Equity (times) 1.0 1.0 0.8
 Interest cover (times) 2.1 2.3 2.6
 Net working capital cycle (days) 77 70 60
 Count of Cos. 23,680 23,061 7,171
Numbers are net of P&E
Updated on: 14 Jan 2021 10:28AM