India may emerge fastest growing emerging markets in current fiscal, says Fitch Ratings; Retains growth outlook at 7%

The World Bank also expressed optimism that India's real GDP would grow at 6.9% in the current fiscal, an improvement from its previous projection of 6.5%.

The World Bank and the Fitch Ratings have shown optimism about the Indian economy. Both organisations have said that India will grow at around 7% in the current fiscal. Fitch Ratings retained the economic growth forecast for India at 7% for the current fiscal in its global economic outlook. The rating agency observed that India is likely to emerge as among the fastest growing emerging markets in the current fiscal.

At the same time though, the agency has slashed the growth projections for the next two fiscals, observing 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.

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 the GDP for 2022-23 on the back of strong growth in revenue collections. 

The World Bank also expressed optimism that India's real GDP would grow at 6.9% in the current fiscal, an improvement from its previous projection of 6.5%. In its India Development Update, the global financial institution said that the revised update was mainly due to greater resilience shown by the Indian economy against global shocks and better September quarter figures.

It has also said that India's inflation is expected to stay at 7.1% in 2022-23. Though it may slide down to 5.2% in 2023-24, the World Bank added.

(With agency inputs)