Fitch Predicts 7.8% Growth For India In 2023-24; Crosses Govt Estimates, Know More Here

The government estimated 7.6 per cent of the growth, whereas the growth forecast by Fitch is 20 basis points higher than the government.

As GDP growth for India was exceeding 8 per cent for three consecutive quarters, Rating agency Fitch estimated 7.8 percent of growth in the country in the financial year 2023-24.

The government estimated 7.6 per cent of the growth, whereas the growth forecast by Fitch is 20 basis points higher than the government.

Ficth said India’s real GDP rose by 8.4 per cent year-on-year in the October-December quarter, which is a much stronger increase than what it had expected. 

Fitch On India’s GDP in 2024-25

Ficth forecasted that the Indian economy’s real GDP forecast to increase by 7.0 per cent in 2024-25, which is actually an increase of 0.5 percentage points in their December forecasts.

“Domestic demand, especially investment, will be the main driver of growth, amid sustained levels of business and consumer confidence,” Fitch said.

Fitch expects that headline inflation to steadily decrease to 4 per cent by calendar year-end on the assumption that recent food price volatility will subside.

Meanwile, Fitch Ratings has also raised global GDP growth for 2024 by 0.3 percentage points to 2.4 per cent in its latest Global Economic Outlook (GEO).

India GDP Growth History

India’s GDP exceeded all expectations of rating agencies and economists in October-December in 2023-24 and grew by 8.4 per cent during.

Whereas in April-June and July-September the Indian economy grew by 7.8 per cent and by 7.6 per cent respectively. The major reason behind India’s economic growth is domestic demand rising. India’s economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, respectively.

Crisil On India’s GDP

Rating agency Crisil on 6th March projected that India’s real GDP growth will moderate to 6.8 percent in FY2025 from the 7.6 percent expected in the ongoing fiscal.

However, the agency added that even with the moderated economic growth rate, India will continue to be the fastest-growing large economy.

In its India Outlook report, Crisil said that the nature of government spending will provide some support to the investment cycle and rural incomes.

(With Inputs From ANI)