Fitch Ratings has revised India’s GDP growth forecast for FY25 to 7.2%, up from the previous estimate of 7%. This adjustment is attributed to expected recovery in consumer spending and continued investment, although at a slower pace than recent quarters. The economy had grown by 8.2% in FY24.
Fitch anticipates a continued rise in investment, albeit more slowly than in recent quarters, while consumer spending is expected to recover due to elevated consumer confidence. Purchasing managers’ surveys indicate ongoing growth at the start of the current financial year.
The publication also raised the global growth forecast for 2024 to 2.6% from 2.4%. European recovery prospects have improved, China’s export sector is reviving, and domestic demand in emerging markets (excluding China) shows stronger momentum.
Fitch’s forecast aligns with the Reserve Bank of India’s (RBI) latest estimate of 7.2%. This is higher than projections by the IMF and ADB, both of which revised their forecasts to 7% in April, and S&P, which projects 6.8% growth.
Signs of a normal monsoon season should support growth and stabilize inflation, though recent heatwaves pose a risk. Fitch expects growth to slow in later years, projecting 6.5% for FY25/26 and 6.2% for FY26/27.
The RBI maintained its policy rate at 6.5% but is expected to cut it to 6.25% this year, with further reductions anticipated in 2025 and 2026. Globally, monetary policy easing is taking shape with expected rate cuts by the ECB, US Federal Reserve, and Bank of England, although persistent inflation suggests a slower decline in global rates over the next 12-18 months.
The Comptroller and Auditor General of India inaugurated the 'Chadwick House: Navigating Audit Heritage' Museum at Shimla…
China’s Chang’e 6 spacecraft has successfully brought samples from the far side of the moon…
Cricket is a sport known for its various achievements, but scoring a century (100 runs)…
Kotak Mahindra Bank in India plans to expand its branch network by 175 to 200…
India’s first artificial intelligence university, Universal AI University (UAIU), has appointed international strategist and multiple…
Architects and engineers are consistently pushing the boundaries to create towering structures known as skyscrapers,…