Fitch Ratings raises India's average growth potential to 6.4% till 2028

Fitch says the Indian economy rebounded stronger than expected, showing less pandemic "scarring" as it updates its five-year potential GDP projections

Fitch Ratings on Thursday raised India's average annual growth potential till 2028 to 6.4 per cent, from 6.2 per cent estimated in November 2023.

"The Indian economy bounced back more strongly than we expected at the time of the 2023 report, suggesting a less adverse "scarring" impact from the pandemic shock," Fitch said while updating the five-year-ahead potential GDP projections.

In its updated forecast, Fitch upped India's average growth estimate for 2023-2028 to 6.4 per cent, from 6.2 per cent.

It said Fitch Ratings has slightly lowered its medium-term potential GDP projections over the next five years for the 10 emerging market economies covered in the Global Economic Outlook (GEO).

"Our new projection sees growth at 3.9 per cent on a GDP weighted basis, down from 4 per cent in our previous assessment published in November 2023," it said, adding that "Our unweighted average EM10 potential growth projection is 3.1 per cent, just higher than the 2023 report.