Rating agency Fitch increases India's GDP forecast, GDP maybe 6.3 percent in FY24

America's rating agency Fitch has today estimated India's gross domestic product (GDP) for the current financial year 2023-24. According to Fitch, India's GDP could be 6.3 percent in FY24 as compared to the 6 percent estimated earlier.
The reason for increasing GDP estimates is due to India's strong results in the first quarter and to remain the same in the coming times. Let us tell you that India's economy was 9.1 percent in the last financial year.
The rating agency said that India's economy has grown on base. In the first quarter of the last financial year, the country's GDP was 6.1 percent. In addition, the PMI survey and credit growth also remain strong. Due to this, the GDP estimates for FY24 have increased by 0.3 percent from 6 to 6.3.
In March, Fitch had reduced its forecast for 2023-24 to 6 percent from 6.2 percent, citing high inflation and interest rates as well as weak global demand. Further, for the financial years 2024-25 and 2025-26, Fitch has projected a growth of 6.5 percent.
In March, Fitch cut its forecast for 2023-24 to 6 percent from 6.2 percent, citing high inflation and interest rates as well as weak global demand. For the financial years 2024-25 and 2025-26, it is estimated to increase by 6.5 percent.
Fitch said in its report that inflation has come down due to the growth of the economy and the domestic economy has picked up. The rating agency said January-March GDP growth was higher than expected, and the manufacturing sector recovered after two consecutive quarters of contraction, boosted by construction and a rise in farm output. In terms of expenditure, GDP growth was driven by growth in domestic demand and net trade.