look news india
Mumbai: Fitch has raised the estimate of India's economic growth rate (GDP) for the current financial year to 7.20 percent. Earlier in March, Fitch had estimated it to be seven percent. Fitch has raised its estimate keeping in mind the increase in consumption expenditure and investment in the country.
Fitch's report said that 6.50 percent and 6.20 percent have been estimated for the financial year 2025-26 and 2026-27.
The Reserve Bank of India (RBI) also earlier this month projected GDP at 7.20 percent for the financial year 2024-25. This view of the RBI comes in the wake of increasing rural demand and declining inflation. Investment growth will continue but the pace of growth will be slow.
However, as consumer confidence increases, spending will also increase. India's purchasing managers survey data show a strong situation since the beginning of the current financial year. The Fitch report said that the forecast of a good monsoon in the country this year will support growth and also reduce inflation volatility.
India's economic growth rate in the last financial year was 8.20 percent. By the end of 2024, the inflation rate will come down to 4.50 percent and in 2025 and 2026 it will be seen on average at 4.30 percent. It is expected that the Reserve Bank will reduce the repo rate by 25 basis points to 6.25 percent in the current year.
