India’s economy will grow 7.3% in the current financial year and gain pace to 7.5% next year as the “temporary drag” from demonetisation and the goods and services tax fades away, Fitch Ratings forecast.
The rating company reaffirmed India’s ‘BBB-’ rating with a stable outlook as it pointed to India’s growth potential and lauded the Reserve Bank of India’s monetary management. Fitch said GST is an important reform that would support growth in the medium term when teething issues dissipate.
“India’s five-year average real GDP growth of 7.1% is the highest in the APAC region and among ‘BBB’ range peers. Growth has the potential to remain high for a substantial period of time, as convergence with more developed economies can be expected,” Fitch said in a statement from Hong Kong. “India has the highest mediumterm growth potential among the largest emerging markets.” Read More
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