News Flash

Fitch revises up India's FY25 growth forecast to 7.2% from 7% earlier

19 Jun '24

1 min read

Fitch revises up India's FY25 growth forecast to 7.2% from 7% earlier

Pic: Adobe Stock

Insights

Fitch Ratings has raised India's growth forecast for FY25 from 7 per cent projected in March to 7.2 per cent now, citing recovery in consumer spending, increased investment and an expected normal monsoon.
It projected a growth rate of 6.5 per cent for FY26 and 6.2 per cent for FY27 for India.
Investment is forecast to rise, but slower than in recent quarters.

Fitch Ratings has raised India’s growth forecast for fiscal 2024-25 (FY25) from 7 per cent projected in March to 7.2 per cent now, citing recovery in consumer spending and increased investment.

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)

More Textiles News - India...