For 2019-20, it estimated the country to grow at 7.5 per cent.
We have revised up our forecast for 2018-19 growth to 7.4 per cent from 7.3 per cent in March. However, higher financing costs (stemming from monetary tightening and higher market premiums) and rising oil prices should limit the upside to growth, Fitch said in its Global Economic Outlook.
The economy grew at 6.7 per cent in 2017-18 and 7.7 per cent in January-March quarter.
India has better macroeconomic fundamentals than in 2013 and very low foreign ownership rates in the domestic government bond market, but the current account deficit has been widening as a result of rising oil prices, reviving domestic demand and poor manufacturing export performance, it said.
Fitch also said the near-term global growth prospects remain robust despite rising trade tensions and political risks.
Global trade tensions have risen significantly this year, but at this stage the scale of tariffs imposed remains too small to materially affect the global growth outlook.
"A major escalation that entailed blanket across-the-board geographical tariffs on all trade flows between several major countries would be much more damaging," says Brian Coulton, Fitch's Chief Economist.
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