Fitch Ratings Boosts India's GDP Growth Forecast Amid Domestic Demand Surge
Fitch Ratings has increased India's GDP growth forecast to 6.9% for the current fiscal year, citing strong domestic demand and robust economic activity. Despite the positive outlook, growth is expected to slow down to 6.3% in FY27 and 6.2% in FY28 with the economy nearing its potential.
- Country:
- India
Fitch Ratings has revised its forecast for India's GDP growth this fiscal year, upping it to 6.9% from the previously estimated 6.5%. This adjustment follows a notable rise in economic activity driven by robust domestic demand and substantial growth in the June quarter.
The Global Economic Outlook-September from Fitch highlighted that economic activity had accelerated sharply between the March and June quarters, reaching a year-on-year growth rate of 7.8% in real GDP. This figure exceeded the anticipated 6.7% growth projected in June.
While domestic demand continues to propel growth, Fitch cautions that annual growth may decelerate in the latter half of the fiscal year, forecasting a slowdown to 6.3% in FY27 and 6.2% in FY28 as the economy approaches its potential.
(With inputs from agencies.)
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