Country's economy will grow rapidly in 2024-25, Fitch estimates GDP growth rate at 6.9 percent for 2023-24

Fitch Ratings expects India to be one of the fastest growing countries in the world with GDP growth of 6.5 percent in 2024-25. The rating agency has estimated the GDP growth rate for the current financial year 2023-24 at 6.9 percent.

Fitch said in its report, 'Demand for cement, electricity and petroleum products will remain strong in the current financial year. India's growing infrastructure spending will also boost steel demand. Car sales will also continue to increase.

Fitch said in a report on Friday that GDP is expected to slow down after fast growth in 2023. India is currently the fifth largest economy in the world after the US, China, Germany and Japan. India's GDP is expected to exceed that of Japan by 2030. If this happens, India will become the second largest economy in the Asia-Pacific region.

The rating agency said despite weakness from slower growth in key overseas markets, India's domestic consumption will drive demand from the corporate sector. Due to reduced input cost pressure, the profit level of companies in the financial year ending March 2025 may increase by 290 basis points as compared to 2022-23. This will help corporates retain employees despite high capital expenditure.

Regarding India's information technology, which contributes a lot to GDP, Fitch said that the growth in sales of IT services is likely to decline due to slow demand in the US and European Union countries. However, companies should give priority to higher profits while ignoring the pressure of firing employees and salary.