In a significant development, global rating agency Fitch Ratings has revised India’s GDP growth forecast upwards for the fiscal year 2024-25 to 7.2%, marking an increase from its earlier projection of 7%.
The agency attributed this optimistic outlook to a rebound in consumer spending and a notable uptick in investment activities within the country.
In its latest global outlook report released on Tuesday, Fitch highlighted the resilience of the Indian economy despite recent challenges.
The agency stated, “We expect the Indian economy to grow by a strong 7.2% in FY25,” underscoring the positive momentum anticipated in the coming fiscal year.
Looking ahead, Fitch provided further insights into its economic projections for India, forecasting growth rates of 6.5% and 6.2% for FY26 and FY27, respectively.
While acknowledging a slower pace of investment growth compared to previous quarters, Fitch expressed confidence in the revival of consumer spending supported by increased consumer confidence.
Moreover, Fitch’s analysis extended to inflation trends, predicting a gradual decline in the retail inflation rate.
The agency anticipated inflation to ease to 4.5% by the end of the current year and stabilize around 4.3% in both 2025 and 2026.
This revision by Fitch follows a similar upward adjustment in India’s GDP growth forecast by the World Bank, which recently raised its estimate to 6.6% for FY25 from 6.4%.
The successive upgrades by prominent global institutions reflect growing optimism surrounding India’s economic recovery and resilience amidst evolving global dynamics.
Fitch’s optimistic outlook on India’s economic trajectory underscores improving fundamentals and recovery prospects, driven by a resurgence in consumer demand and steady investment trends.
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