Team Blitz India
NEW DELHI: Rating agency Fitch has revised its forecast for India’s economic growth to 6.3 per cent for 2023-24 from six per cent it had predicted previously.
This upward revision is primarily because of a stronger outturn in the first quarter and near-term momentum.
The growth forecast compares with 7.2 per cent GDP expansion in FY23. In the previous fiscal year (FY22), the economy had grown 9.1 per cent. Fitch had in March lowered its forecast for 2023-24 to six per cent from 6.2 per cent citing headwinds from elevated inflation and interest rates along with subdued global demand. In 2024-25 and 2025-26 fiscal years, it estimated a growth of 6.5 per cent each.
The rating agency said, “India’s economy has been showing broadbased strength – with GDP up by 6.1 per cent year-on-year in first quarter (January-March) and auto sales, PMI surveys and credit growth remaining robust in recent months.” Inflation has moderated since and the domestic economy has picked up.
Fitch said there has been a recovery in manufacturing, after two consecutive quarterly contractions, a boost from construction and an increase in farm output.
It highlights that in expenditure terms, GDP growth was driven by robust domestic demand and favourable contribution from net trade.
