Fitch raises India's GDP forecast to 6.3% for current fiscal year

Category : Business and economics Published on: June 24 2023

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Fitch Ratings revised upwards its FY24 economic growth forecast for India to 6.3 per cent from 6 per cent it had predicted earlier.
The growth forecast compares with 7.2 per cent GDP expansion in FY23. In the previous fiscal year (FY22), the economy had grown 9.1 per cent.
Fitch had in March lowered its forecast for 2023-24 to 6 per cent from 6.2 per cent citing headwinds from elevated inflation and interest rates along with subdued global demand.
For 2024-25 and 2025-26 fiscal years, it estimated a growth of 6.5 per cent each.
The Reserve Bank of India (RBI) has kept policy rates at 6.5 per cent since the start of the year, while headline inflation eased from a peak of 7.8 per cent to 4.3 per cent in May, a figure that is already within the RBI’s tolerance band of 2-6 per cent.
Wholesale price index based inflation (WPI) has also fallen to its lowest in more than seven years to (-) 3.48 per cent in May.