India’s growth to accelerate to 7.3% in next fiscal, says Fitch
New Delhi: The credit rating agency Fitch has said that India’s economic growth will accelerate to 7.3% in the current financial year and 7.5% in the next fiscal.
In its second-quarter Sovereign Credit Overview for Asia Pacific region, Fitch said the growth rate will accelerate as money supply has recovered to its pre-demonetisation level and disruptions related to the rollout of GST have diminished.
It said India’s ratings balance a strong medium-term growth outlook and favourable external balances against a weak fiscal position and difficult business environment.
But the country’s business environment is likely to improve gradually with the implementation and continued broadening of the government’s structural-reform agenda, the rating agency said.
India’s growth rate ‘amazingly fast’, said ADB
Earlier, the Asian Development Bank said that India’s projected GDP growth of over 7% for the current fiscal is amazingly fast and if this momentum is maintained, the size of the economy can double within a decade.
ADB Chief Economist Yasuyuki Sawada had said, India should not worry about not achieving 8 per cent growth but focus on increasing domestic demand by reducing the income inequality.
He said growth is driven more by domestic consumption than exports. Mr Sawada said inequality and poverty reduction would play a very important role in achieving higher growth because consumption can stimulate more production and that can create more employment.