The World Bank and Fitch Ratings have shown optimism about the Indian economy. Both the organizations have said that India will grow at the rate of around 7% in the current financial year. Fitch Ratings has retained India’s economic growth forecast for the current fiscal at 7% in its global economic outlook. The rating agency observed that India is likely to emerge among the fastest growing emerging markets in the current financial year.
At the same time, however, the agency has lowered growth projections for the next two fiscal years, noting that while the Indian economy is insulated from global shocks, it is not immune to global developments. In its December edition of the Global Economic Outlook, Fitch projected India’s GDP to grow at 7 per cent in the current fiscal, but added that it could slow down to 6.2 per cent in 2023-24 and 6.9 per cent in 2024-25 Is.
On the other hand, the World Bank today said that the Indian government is on track to meet its fiscal deficit target of 6.4% of GDP for 2022-23 on the back of a strong growth in revenue collection.
The World Bank also expressed optimism that India’s real GDP will grow at 6.9% in the current fiscal, better than its previous estimate of 6.5%. In its India growth update, the global financial institution said the revised update was mainly due to the greater resilience shown by the Indian economy against global shocks and better September quarter data.
It has also said that India’s inflation is expected to be 7.1% in 2022-23. However, the World Bank said it could come down to 5.2% in 2023-24.
(with agency inputs)