New Delhi: US-based credit rating agency, Fitch Ratings revised India’s GDP forecast. The agency slashed India’s GDP forecast to 6.4 per cent from 7 per cent for FY25. Fitch expects the GDP to rise by 6.4 per cent in FY25 and 6.5 per cent in FY26, slowing from 8.2 per cent in FY24.
This cut comes after the Reserve Bank of India (RBI), in its recent monetary policy committee (MPC), revised India’s growth forecast to 6.6 per cent from 7.2 per cent.
‘The Indian economy recovered strongly from the Covid-19 pandemic shock. Although indicators point to a more mixed picture in recent months, we do not think that the softness will translate into a prolonged slump in economic activity,’ Fitch said in its report.
In the July-September quarter of FY25, the Indian economy grew 5.4 per cent, which is lower than the RBI’s forecast of 7 per cent. Similarly, in the April-June quarter the Indian economy grew 6.7 per cent, lower than RBI’s expectations.
Also Read: CareEdge Ratings projects India’s fiscal deficit at 4.8 per cent in FY25
According to the Economic Survey released this year, India’s real GDP growth was projected at 6.5-7 per cent for FY25. The real GDP growth takes into account inflation as well.
In FY24, India’s GDP grew 8.2 per cent, making its mark as one of the fastest-growing economies in the world. In FY23, the economy grew 7.2 per cent and it grew 8.7 per cent in FY22.
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