Fitch Ratings has revised India’s economic growth forecast upward to 7.2% for FY2024-25, citing strong domestic demand, government spending, and resilience in key sectors. The agency highlighted that despite global economic uncertainty, India’s fundamentals remain robust.
The report noted that private consumption and increased capital expenditure by the government are driving growth. Manufacturing and services, particularly technology and financial services, are also contributing to the upward momentum.
Fitch also emphasized that inflation pressures, though moderating, need to be closely monitored by policymakers. The Reserve Bank of India’s monetary stance will play a key role in balancing growth with price stability.
India’s improved growth outlook comes at a time when several major economies are slowing down. Analysts believe this makes India a crucial player in sustaining global economic momentum.
Experts suggest that sustained reforms, infrastructure investments, and efforts to boost exports will be critical to maintain the pace in the coming years.
