India’s Growth Forecast : Fitch Ratings on Tuesday raised India’s growth forecast for the current financial year. The rating agency has raised India’s GDP growth forecast for the financial year 2024-25 from 7 percent to 7.2 percent. The rating agency has increased the growth rate due to recovery in consumer spending and increased investment. For the financial year 2025-26 and financial year 2026-27, Fitch has projected growth of 6.5 percent and 6.2 percent respectively.
Improvement in rural demand
Fitch said in its Global Economic Outlook report, “We estimate that the Indian economy will grow at a strong 7.2 percent in FY2024-25.” Fitch’s estimate is in line with the RBI’s estimate. The Reserve Bank of India (RBI) earlier this month estimated that the Indian economy would grow at 7.2 percent in the current financial year due to improvement in rural demand and softening of inflation. The rating agency said that investment will continue to increase, but this growth will be slower than in recent quarters, while consumer spending will improve with increasing consumer confidence.
Last year the growth rate was 8.2%
Purchasing managers’ survey data points to continued growth at the start of the current financial year. It said that signs of a normal monsoon season ahead will boost growth and make inflation less volatile. However, the recent severe heat has posed risks. The Indian economy grew by 8.2 per cent in the last fiscal year 2023-24.
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