After a contraction in the current financial year, India’s economy is forecast to bounce back with a sharp growth rate of 9.5 percent next fiscal, Fitch Ratings has said. It has forecast a 5 percent contraction in the GDP in the ongoing financial year.

Fitch Ratings said after the global crisis, India’s GDP growth is likely to return to higher levels than ‘BBB’ category peers.

To support the economy, the Reserve Bank of India has eased monetary policy by cutting policy rates and providing liquidity through long-term repo operations. Prudential requirements for banks have also been eased to free up liquidity for lending.

The government has announced stimulus measures amounting to 10 percent of GDP.