Fitch Adjusts India's Economic Growth Forecast Amidst Pandemic Recovery

Fitch Ratings revised India's growth potential outlook for 2023-2028 to 6.4%, up from a prior estimate of 6.2%. This adjustment followed stronger-than-expected economic resilience post-pandemic. Despite a general reduction in medium-term projections for emerging markets, India's growth prospects demonstrate an optimistic turnaround.

Fitch Ratings has updated its economic forecast for India, raising the country's projected average annual growth from 6.2% to 6.4% through to 2028.

The adjustment comes as the Indian economy shows robust recovery from the pandemic, exceeding expectations set in the November 2023 report. This suggests the pandemic's adverse impacts were less severe than anticipated.

While India's prospects are on the rise, Fitch has slightly trimmed growth projections for the ten emerging markets evaluated in its Global Economic Outlook, with a new weighted growth projection of 3.9% compared to previous estimates.

(With inputs from agencies.)