Fitch raises India’s growth forecast for 2023-24 to 6.3 percent

New Delhi. Fitch Ratings has raised India’s Gross Domestic Product (GDP) growth forecast to 6.3 per cent for the current financial year 2023-24. Earlier, Fitch had estimated India’s growth rate to be six percent. Rating agency Fitch has raised India’s GDP growth forecast for the current fiscal on the back of a better growth rate in the January-March quarter. Before this, India’s growth rate in the previous financial year 2022-23 was 7.2 percent. At the same time, in 2021-22, the country’s economy grew at the rate of 9.1 percent. The rating agency said on Thursday, “The Indian economy is broadly strong. In the first quarter (January-March) of 2023, it has grown at an annual rate of 6.1 percent.

Vehicle sales figures have been better in recent months. In addition, the PMI survey and credit growth have also been strong. Due to this, we have increased the growth rate forecast by 0.3 percent to 6.3 percent for the current financial year. Earlier in March, Fitch had revised India’s growth forecast for 2023-24 in view of high inflation and high interest rates and weak global demand. The rate estimate was reduced from 6.2 to 6 percent. Fitch said that the growth rate of the Indian economy is estimated to be 6.5 percent in 2024-25 and 2025-26. The rating agency said that the GDP growth rate in the January-March quarter has been higher than expected. Apart from this, the condition of the manufacturing sector has also improved after two quarters of decline. From the expenditure side, GDP growth will be supported by domestic demand.

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