Fitch Revises India’s GDP Growth Forecast To 7.2% For FY25 Amid Strong Consumer Spending
Fitch Revises India’s GDP Growth Forecast to 7.2% for FY25 Amid Strong Consumer Spending.
Fitch Revises India’s GDP Growth Forecast: Global rating agency Fitch has increased its confidence in India’s economic development, revising the GDP growth forecast to 7.2% for FY25.
Read about the factors driving this upward revision and future growth projections. The rating agency’s confidence in India’s development increased, and GDP growth maybe 7.2 percent in FY25.
Global rating agency Fitch has once again revised India’s GDP growth.
The agency said on Tuesday that India’s GDP growth may be 7.2 percent in the current financial year due to improved consumer spending and increased investment.
Earlier the agency had estimated the growth rate at 7 percent.
The rating agency projected a growth rate of 6.5 percent for the financial year 2025-26 and 6.2 percent for the financial year 2026-27. Let us tell you that Fitch has given this information in its outlook report.
In the Global Economic Outlook report, Fitch said that we expect the Indian economy to grow strongly by 7.2 percent in FY 2024/25 (revision up 0.2 pp from March GEO).
Fitch Revises India’s GDP Growth Forecast: Fitch’s estimate is in line with RBI’s estimate.
This month, the RBI in its MPC meeting had projected the Indian economy to expand by 7.2 per cent in the current fiscal year due to improving rural demand and softening inflation.
The RBI had said in its report that investment in India will continue to increase and consumer spending will improve due to rising consumer confidence.
Inflation hit.
Fitch said in its report that signs of a more normal monsoon season in the coming years should support growth and inflation should be less volatile, although the recent heat poses risks.
We expect growth to slow in subsequent years and move closer to our medium-term trend estimate.
The Indian economy grew 8.2 percent in the last fiscal year (2023-24), rising to 7.8 percent in the March quarter.
Fitch expects inflation to decline to 4.5 percent by the end of 2024 and average 4.3 percent in 2025 and 2026.
Apart from this, the rating agency expects the RBI to cut policy interest rates by 25 basis points to 6.25 percent this year.
