GDP: The rating agency said on Thursday, “The Indian economy is broadly strong. In the first quarter (January-March) of 2023, it grew at an annual rate of 6.1 percent. Vehicle sales figures have been better in recent months. In addition, the PMI survey and credit growth have also been strong.

Rating agency Fitch has raised India‘s gross domestic product (GDP) growth forecast to 6.3 per cent for the current financial year 2023-24. In the past, Fitch had said that India’s growth rate would be six percent.

GDP figures changed in view of better growth in January-March quarter

Rating agency Fitch has upgraded India‘s GDP growth forecast for the current fiscal on the back of a better growth rate in the January-March quarter. India’s growth rate in the last financial year 2022-23 was 7.2 percent. At the same time, in 2021-22, the country’s economy grew at the rate of 9.1 percent.

Rating agency bid – Indian economy broadly strong

The rating agency said on Thursday, “The Indian economy is broadly strong. In the first quarter (January-March) of 2023, it grew at an annual rate of 6.1 percent. Vehicle sales figures have been better in recent months. In addition, the PMI survey and credit growth have also been strong. Due to this, we have increased the estimate of the growth rate for the current financial year by 0.3 percent to 6.3 percent.

In March, Fitch had reduced the GDP estimate from 6.2% to 6%.

Earlier in March, Fitch had cut India’s growth forecast for 2023-24 to 6 per cent from 6.2 per cent in view of high inflation and high interest rates and weak global demand. Fitch said that the growth rate of the Indian economy is estimated to be 6.5 percent in 2024-25 and 2025-26. The rating agency said that the GDP growth rate in the January-March quarter has been higher than expected. Apart from this, the condition of the manufacturing sector has also improved after two quarters of decline. From the expenditure side, GDP growth will be supported by domestic demand.