Fitch Ratings has retained India’s economic growth forecast for the current fiscal at 7 per cent. The rating agency said that India could be one of the fastest growing emerging markets this year.
Fitch Ratings, however, cut projections for the next two fiscal years, saying the country is somewhat insulated from global economic shocks but not impervious to global growth.
Fitch estimated India Gross Domestic Product to grow at 7 per cent in the current fiscal and slow down to 6.2 per cent in 2023-24 and 6.9 per cent in 2024-25, in its Global Economic Outlook, December edition.
in September, fox fur A growth of 7 per cent was projected for the current fiscal, followed by 6.7 per cent in 2023-24 and 7.1 per cent in 2024-25.
Given the stronger-than-expected results, Fitch has forecast a 7 per cent growth in the fiscal year ending March 2023 (FY23).
It added, “This year India is expected to record the fastest growth rate among the emerging markets in our Fitch20 coverage.”
India is somewhat insulated from global economic shocks given the domestically concentrated nature of its economy, with consumption and investment making up the bulk of the country’s GDP.
“However, India is not impervious to global growth. A worldwide economic slowdown is expected to reduce demand for Indian exports,” Fitch said.
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