India GDP Data: International rating agency Fitch Ratings has increased India’s growth forecast for the financial year 2023-24. Fitch said that the Indian economy will grow at the rate of 6.3 percent in the current financial year. Earlier, Fitch had estimated to be 6 percent. Due to the better outlook of the Indian economy and the forecast of better growth rate in the first quarter, Fitch has improved its ratings forecast.
Releasing the figures on 31 May 2023, the Ministry of Statistics had said that India’s GDP in the financial year 2022-23 was 7.2 per cent, which was better than expected. Only after the announcement of this figure, from economists to agencies are predicting the fastest growth of the Indian economy in 2023-24. Earlier in March 2023, Fitch had reduced the growth forecast for the current financial year to 6 per cent from 6.2 per cent. Fitch had said in its forecast that the Indian economy would have to bear the brunt of high inflation, high interest rates and lack of global demand.
But since March the situation seems to be changing. In the last two monetary policy meetings, the Reserve Bank of India has not made any change in the policy rates ie repo rate. During this, there was a decline in the retail inflation rate in April and May and in May it has come down to 4.25 percent. In such a situation, the expectation of cheaper loans has started increasing, which can benefit the Indian economy.
Fitch said that GDP growth in the January-March quarter was excellent. After facing a continuous decline for two quarters, recovery has been seen in the manufacturing sector, improvement has been seen in the construction sector, as well as an increase in agricultural production, due to which the domestic economy is witnessing a boom. Keeping these things in mind, the rating agency has increased the estimate of the growth rate. Fitch has said in its estimate that India’s GDP is estimated to be 6.5 percent in 2024-25 and 2025-26.
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