New York - Fitch Ratings raised its prediction for India's economic growth to 6.3 per cent for the current fiscal year 2023–2024 from its prior prediction of 6 per cent. This is mostly due to near-term momentum and a stronger outturn in the first quarter

The growth projection is in comparison to the 7.2 per cent GDP growth in FY23. The economy had expanded by 9.1 per cent in the preceding fiscal year (FY22).
"India's economy has been showing broad-based strength - with GDP up by 6.1 per cent year-on-year in 1Q23 (January-March) and autosales, PMI surveys and credit growth remaining robust in recent months - and we have raised our forecast for the fiscal year ending in March 2024 (FY23-24) by 0.3 percentage points to 6.3 per cent," the rating agency said.
In March, Fitch reduced its projection for 2023–2024 from 6.2per cent to 6 per cent, noting challenges from high inflation and interest rates as well as weak global demand.

For 2024-25 and 2025-26 fiscal years, it estimated a growth of 6.5 per cent each. Since then, inflation has eased and the domestic economy has picked up.