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.
ALSO READ: NRI deposits rise nearly 10% in FY25 to $16.16 bn, RBI data shows
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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Connect with us on WhatsApp
More From This Section
Private sector business activity rises to 13-month high in May: PMI data
May PMI rises to 61.2, highest since April 2024, driven by services sector
Outlook for India is one of cautious optimism, says the RBI report
Trading with India will be 'quicker, cheaper, easier' post-FTA, says UK
India, EU looking for early harvest trade pact by July: Govt official
India’s private sector output grew at its fastest pace in 13 months in May, helped by a sharp rise in services that prompted the sector to employ more people, said a private survey on Thursday.
HSBC’s flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 61.2, up from a downward revised figure of 59.7 in April. The index, which measures monthly change in the combined output of manufacturing and services, has been above the 50 mark that separates growth from contraction for the 46th consecutive month.
"The increase was the most pronounced since April 2024. There was a mild loss of growth momentum in the manufacturing industry but service providers reported the fastest rise in output in 14 months," said the survey.
The HSBC Flash India Manufacturing PMI was at 58.3 in May, little changed from April's reading of 58.2. The latest figure – a weighted average of new orders, output, employment, suppliers’ delivery times and stocks of purchases indices –was consistent with a sharp improvement in the health of the sector.
“While goods producers indicated the slowest increase in output for three months during May, service providers reported the fastest rise since March 2024. At the composite level, the latest upturn was the quickest in just over a year. Monitored companies attributed growth to buoyant demand, investment in technology and expanded capacities,” said the survey.
Also Read
May PMI rises to 61.2, highest since April 2024, driven by services sector
India's March services growth moderated, inflation eased sharply: PMI data
Boost in domestic, int'l demand drives growth in services PMI in February
Services sector growth pushes India's private sector output to 6-month high
PMI Electro Mobility secures Rs 250 crore funding for strategic EV growth
Pranjul Bhandari, chief India economist at HSBC, said the flash PMI for May indicates another month of strong economic performance as growth in production and new orders among manufacturing firms remains robust, despite a marginal cooling from the rates of increase observed in April.
“Notably, there is a firm pick up in employment, especially in the service sector, suggesting healthy job creation accompanies the expansion of both India’s manufacturing and service sectors," she said.
Flash PMI records 75 per cent to 85 per cent of the 800 responses from services and manufacturing firms each month. The final manufacturing PMI figure for May will be released on June 2; services and composite PMI figures will be released on June 4.
“May data showcased reduced pressure on the operating capacities of Indian private sector companies, as outstanding business volumes rose at the slowest pace since September 2024. Service providers noted the weakest increase in backlogs for eight months and goods producers signalled no change since April,” said the survey.
Connect with us on WhatsApp
More From This Section
Outlook for India is one of cautious optimism, says the RBI report
Trading with India will be 'quicker, cheaper, easier' post-FTA, says UK
India, EU looking for early harvest trade pact by July: Govt official
India eyes multi-phase trade deal with US, interim pact likely before July
Premium
Datanomics: Imports of readymade garments from B'desh to suffer amid curbs