Fitch Ratings increased its prediction for India's GDP growth for the current fiscal year, citing the country's overall strength and strong quarterly GDP growth. Fitch had earlier forecast the economy to grow by 6% in 2023-24, lowering it from 6. 2%. Now, it has forecast 6. 5% growth for 2024-25 and 2025-26 fiscal years.
“India’s economy has been showing broad-based strength - with GDP up by 6. 1% (year-on-year) in 1Q23 and auto sales, PMI surveys and credit growth remaining robust in recent months - and we have raised our forecast for the fiscal year ending in March 2024 (FY23-24) by 0. 3 percentage points to 6. 3%,” Fitch Rating said in its Global Economic Outlook.
According to the rating agency, growth in emerging markets outside of China for 2023 has been increased from 2% to 2.9%, with notable gains in Brazil, India, Mexico, and Russia. “The stronger out turn in 1Q23 and near-term momentum have prompted us to upgrade our FY23-24 growth forecast to 6. 3% - revised up from 6% in March - one of highest growth rates in the world,” Fitch said in its report.
While the government predicts growth to be between 6.5% and 7% in the current fiscal year, the RBI projects growth to be 6.5%. After a quicker-than-anticipated reopening rebound in 1Q23, China's growth has been forecasted to increase to 5. 6% in 2023 from 5. 2%. The recovery has faltered somewhat in recent months but consumption continues to normalise.