Global agency Fitch Ratings on Thursday raised India’s economic growth forecast to 6.3 per cent from 6 per cent for the current fiscal year 2023-24. Let us tell you that the Indian economy is growing at the fastest pace in the whole world. Now all the rating agencies have started accepting this fact. Fitch has also made this change only after seeing India’s fast growth rate. The GDP of the Indian economy was better than expected in the fourth quarter of last year. GDP growth in the fourth quarter was 6.1%. Fitch forecasts growth for FY23 at 7.2%. The Indian economy had grown at a rate of 9.1 per cent in FY22.
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.
Estimated growth rate to be 6.5% in 2025-26
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.
Economists say that the demand in the market will increase as India’s GDP increases. Companies will increase production to meet the demand. For this they will need manpower. That means the number of jobs in the market willl increase. Youth will get jobs in large numbers. With this, foreign investors will be attracted to invest in the Indian market.