Fitch Boosts India's GDP Growth Forecast Amid Robust Domestic Demand
Fitch Ratings has raised India's GDP growth forecast for the current fiscal year to 6.9%, citing strong domestic consumption and June quarter growth. This adjustment follows previous downward revisions by other agencies. However, growth might slow in the fiscal year's second half due to trade uncertainties.
- Country:
- India
Fitch Ratings has revised India's GDP growth forecast upwards to 6.9% for the current fiscal year, highlighting robust domestic demand and strong growth in the June quarter. This marks Fitch as the first global agency to increase its forecast amidst previously lowered estimates by other rating agencies.
The agency observed a significant acceleration in economic activity between the March and June quarters, leading to a revised real GDP growth projection for the April-June period at 7.8% year-on-year. Notably, Fitch had previously estimated a 6.7% growth for this period in its June report.
Despite heightened US trade tensions and import tariffs affecting sentiment, Fitch anticipates robust domestic demand to drive growth, supported by tax reforms and favorable financial conditions. However, it projects a slight economic slowdown in the financial year's latter half, amid uncertainties surrounding trade negotiations.
(With inputs from agencies.)
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