International Business83% investors feel economy will recover in next fiscal: Fitch
The Indian economy will recover in the next financial year even as concerns over poor monsoon, drought and fall in exports loom large, a survey says.
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More than 80 per cent of debt investors who participated in the survey conducted by global rating agency Fitch believe that the Indian economy would recover in the next fiscal, while only three per cent of them say that the slowdown would last for more than 18 months.
However, the area that still concerns about 91 per cent investors is the failed monsoon, drought conditions and continued fall in exports.
"A clear majority of investors (83 per cent) believe the economy will recover (back to 2007 levels) over the next financial year," Fitch said in its Fixed Income Investors Survey conducted between August and September 2009.
Fitch surveyed 45 investors, which included some of the larger institutions operating in the Indian market.
It further said that 14 per cent believe that the current slowdown in India would continue for less than six months.
Besides, it said 57 per cent felt that the RBI will increase repurchase (repo) rates within the next six months.
The economy would remain stable at the current level, said 60 per cent of the investors surveyed, and 31 per cent expect it to grow even faster.
The survey said that 80 per cent of the investors expect the financial performance of lower-rated corporates to significantly deteriorate, while 57 per cent felt that banks will need additional capital to withstand the current credit conditions.