Fitch Ratings on Tuesday kept India’s economic growth forecast at 7 percent for the current fiscal year and said India could be one of the fastest growing emerging markets this year.
However, she trimmed forecasts for the next two fiscal years, noting that while the country is somewhat insulated from global economic shocks, it is not immune to global developments.
In its December Global Economic Outlook, Fitch forecast India’s GDP to grow 7 percent in the current fiscal year, slowing to 6.2 percent in 2023-24 and 6.9 percent in 2024-25.
In September, Fitch had forecast growth of 7 percent for the current fiscal year, followed by 6.7 percent growth in 2023-24 and 7.1 percent growth in 2024-25.
Fitch forecasts growth of 7 percent for the fiscal year ended March 2023 (FY23) on the back of stronger-than-expected results.
“In our Fitch20 coverage, India is expected to post one of the fastest growth rates among emerging markets this year,” it said.
India is protected to some extent from global economic shocks as its economy is domestically focused and consumption and investment account for the bulk of the country’s GDP.
“However, India is not insensitive to global developments. The global economic slowdown is expected to reduce demand for Indian exports,” Fitch said.
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