Fitch Ratings Agency has raised the estimate of India’s economic growth rate to 7.2 percent. Fitch has made this estimate citing improvement in consumer spending and increase in investment.
Economists are excited by GDP growth
– Photo: ANI
Expansion
Fitch Ratings has raised India’s economic growth forecast for the current financial year to 7.2 per cent, citing improved consumer spending and a rise in investment. This is in line with the RBI’s forecast, which earlier this month projected a growth rate of 7.2 per cent due to improving rural demand and softening inflation. Fitch had projected a growth rate of 7 per cent in March this year. The Indian economy will grow at a pace of 6.5 per cent in 2025-26 and 6.2 per cent in 2026-27, the agency said in a report released on Tuesday.
Repo rate: RBI may cut it by 0.25%
Fitch Ratings said that retail inflation may come down to 4.5 percent by the end of the current financial year. This may lead the RBI to cut interest rates by 0.25 percent to bring it down to 6.25 percent. Inflation may average 4.3 percent in 2025 and 2026, which is slightly above the target set by the RBI.
ADB has estimated seven percent
The Asian Development Bank (ADB) had earlier projected Indian GDP to grow at a rate of 7 percent. S&P Global Ratings and Morgan Stanley believe that the economic growth rate could be 6.8 percent in the current financial year. Moody’s expects the growth rate to be 6.6 percent. The country’s economy grew at a strong rate of 8.2 percent in 2023-24. At the same time, the growth rate stood at 7.8 percent in the March quarter.