Fitch Raises India’s 2024-25 GDP Growth Forecast to 7.2%

Fitch has increased its GDP growth forecast for India for the fiscal year 2025 to 7.2 percent from the earlier forecast of 7 percent. The agency attributed this upward revision to the recovery in consumer spending and growing investment trends in the country. According to Fitch’s global outlook report, the Indian economy is expected to grow strongly at 7.2 percent in FY25. Fitch’s estimate suggests that the Indian economy may witness growth rates of 6.5 percent and 6.2 percent in the fiscal years 2026 and 2027 respectively.

The agency noted that while investments are expected to continue rising, the pace of growth may be slower compared to recent quarters, and consumer spending is projected to recover alongside elevated consumer confidence. The rating agency also anticipates a decrease in the retail inflation rate to 4.5 percent by the end of this year, with further declines to 4.3 percent in 2025 and 2026. The World Bank had previously raised India’s GDP growth forecast to 6.6 percent from 6.4 percent. *Please note that this story has been published from a syndicated feed and has not been edited by NDTV staff, with the exception of the headline.

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