It projected a growth rate of 6.5 per cent for FY26 and 6.2 per cent for FY27 for the country in its Global Economic Outlook (GEO) report.
Investment is projected to rise, but slower than in recent quarters. Consumer spending is expected to recover with elevated consumer confidence. Purchasing managers survey data point to continued growth at the start of this fiscal, it noted.
The expected normal monsoon season should support growth and make inflation less volatile, the rating agency said.
Fitch, however, voiced concerns about the recent heatwave that could pose a risk. It also expects the central bank to cut policy interest rates by 25 basis points this year to 6.25 per cent.
Fitch’s projection is in line with the central bank's estimated gross domestic product growth for FY25 at 7.2 per cent.
Fibre2Fashion News Desk (DS)