India GDP: Global rating agency Fitch has maintained India's rating. Fitch estimates that the growth of the Indian economy will be balanced in the year 2024. Fitch said on Tuesday that India will remain the world's fastest growing economy for the next few years. The rating agency has maintained the rating of 'BBB-' for India. Besides, Fitch has also predicted the Indian economy to grow at the rate of 6.9 percent in the financial year 2024.
GDP situation is much better than previous estimates
Rating agency Fitch has said about India that the country's economy will remain stable. India's Long Term Foreign Currency IDR (Issuer Default Rating) will be 'BBB-'. Also expressed hope that the country's economy will continue to progress for many years. According to the agency, there is less certainty on the fiscal path after FY2024 and the trade-off between economic growth and consolidation may become more acute. While estimating India's GDP for the current financial year at 6.9 percent, the agency said that this is much higher than the 6 percent estimated by us in May 2023. The rating agency had estimated 6.5 percent GDP in fiscal year 2025.
There will be no dearth of private investment in the country
On the investment front, Fitch said that there will be no dearth of private investment in the country. Investment is going to play an important role in economic growth. Private investment in India will gradually increase. Due to low domestic savings figures, consumption will also improve.
It is very important to create employment for women
Fitch said in its report that the strong position of banks and improvement in corporate balance sheets will maintain a positive environment for investment. However, Fitch has also expressed concern about the labor market. The rating agency says that it is very important to increase the participation of women. If these positive steps are not taken for women's employment, it may have a negative impact on the outlook.
There may be further decline in inflation
According to the rating agency, inflation figures have come to a standstill in the country. We estimate that inflation will decline to 4.7 percent by the end of fiscal year 2024, which was 5.7 percent in December 2023. Apart from this, Fitch has estimated that the Reserve Bank of India may cut the policy rate by 75 basis points.
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