On Friday, Fitch Ratings cut India's economic growth forecast for the next financial year 2019-20 to 6.8 percent from its previous estimate of 7 percent on weaker than expected outlook.

"While we have cut our growth forecasts for the next fiscal year (FY20, ending in March 2020) on weaker-than-expected momentum, we still see Indian GDP growth to hold up reasonably well, at 6.8 percent, followed by 7.1 percent in FY21," said Fitch in its Global Economic Outlook.

For the current financial year 2018-19, it had reduced the country's GDP (gross domestic product) growth from 7.8 percent to 7.2 percent in December.

It has also cut the growth forecast for the following financial year 2020-21 from 7.3 percent to 7.1 percent.

Fitch said that RBI's (Reserve Bank of India) dovish policy stance and interest rate cut by 0.25 percent in the last monetary policy review (held in February 2019) was supported by India's steadily declining headline inflation.

"We have changed our rate outlook and we now expect another 25 bp cut in 2019, amid protracted below-target inflation and easier global monetary conditions than previously envisaged," it said.

"On the fiscal side, the budget for FY20 plans to increase cash transfers for farmers," it added.

Fitch expects a weaker oil price outlook and the possibility of acceleration in food prices in the months to come to support income and consumption of rural households.