INSUBCONTINENT EXCLUSIVE:
Fitch said it expects the RBI to cut policy interest rates by 25 basis points this year to 6.25 per cent | (Photo: Wikipedia)2 min read
Last Updated : Jun 18 2024 | 10:26 AM IST
Fitch Ratings on Tuesday raised India's growth forecast for current fiscal to 7.2 per cent, from
7 per cent projected in March, citing a recovery in consumer spending and increased investment.
For the fiscal years 2025-26 and 2026-27,
Fitch projected growth rates of 6.5 per cent and 6.2 per cent, respectively.
"We expect the Indian economy to expand by a strong 7.2 per
cent in FY24/25 (an upward revision of 0.2 pp from the March GEO)," Fitch said in its global economic outlook report.
Fitch's estimates are
in line with that of RBI which earlier this month projected Indian economy to expand 7.2 per cent in the current fiscal on the back of
improving rural demand and moderating inflation.
Investment will continue to rise but more slowly than in recent quarters, while consumer
spending will recover with elevated consumer confidence, it said.
Fitch said purchasing managers survey data point to continued growth at
the start of the current financial year.
It said signs of the coming monsoon season being more normal should support growth and make
inflation less volatile, though a recent heatwave poses a risk.
"We expect growth in later years to slow and approach our medium-term trend
estimate," it said, adding growth will be driven by consumer spending and investment.
The Indian economy grew 8.2 per cent in the last
fiscal (2023-24), with a 7.8 per cent expansion in March quarter.
Inflation, Fitch expects, will decline to 4.5 per cent by end 2024 and
average 4.3 per cent in 2025 and 2026.
Fitch said it expects the RBI to cut policy interest rates by 25 basis points this year to 6.25 per
cent.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is
auto-generated from a syndicated feed.)First Published: Jun 18 2024 | 10:26 AMIST
