Fitch Ratings: Fitch retains India’s economic growth forecast at 7 percent

India GDP Growth Forecast 2022: Global rating agency Fitch has presented a report regarding its estimates for the current financial year (2022-23) in India. According to Fitch, India can achieve the distinction of becoming the country with the fastest economic growth among emerging economies. According to this report, Fitch has retained India’s economic growth forecast at 7 percent.

GDP estimate reduced for 2 years
Rating agency Fitch said that it has reduced the Gross Domestic Product (GDP) growth rate estimate for the next 2 financial years. Fitch says the country has been able to insulate itself from global economic shocks to some extent, but it cannot remain completely insulated from global movements.

The country’s GDP will be 7 percent
According to the December issue of Fitch’s Global Economic Scenario, the country’s GDP growth rate will be 7 percent in the current financial year. At the same time, it is expected to slow down to 6.2 percent in 2023-24 and 6.9 percent in 2024-25. Earlier, in the month of September, the growth rate was expected to be 7 percent in the current financial year, 6.7 percent in the next financial year and 7.1 percent in 2024-25. Fitch said that in view of the better condition of the economy, the growth rate has been estimated to be 7 percent in the current financial year. He said, “India is likely to remain one of the fastest growing emerging market economies in our Fitch 20 range.”

contribution of consumption and investment
The nature of India’s economy is largely domestic centric. Consumption and investment are the biggest contributors to the country’s GDP. Due to this, the country has been able to deal with global economic shocks to some extent. Fitch said that India cannot remain completely insulated from global activities. On the other hand, due to economic slowdown at the global level, there is a possibility of decreasing demand for Indian exports.

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