India GDP Growth Rate: American rating agency says that India’s economic growth rate is going to be the highest among the top-10 emerging economies…
In terms of economy, a good news has come a few days before the festival of Diwali. Credit rating agency Fitch has increased India’s economic growth estimates. The agency gave this information on Monday. The agency says that India’s economy can grow at the rate of 6.2 percent in the medium term.
Estimates increased so much in one fell swoop
Rating agency Fitch had earlier estimated that India’s economic growth rate could be 5.5 percent. Now the agency has increased its estimate to 6.2 percent. This means that the agency has made a huge increase in the growth rate estimate by 70 basis points i.e. 0.70 percent. The agency has increased this estimate at a time when the festival of Diwali is going to be celebrated in the country after a few days. This time Diwali is on Sunday 12th November.
India’s best prospects
While increasing the estimate of India’s growth rate, Fitch also said that India’s economic growth prospects in the coming times are the best. According to the rating agency, India’s economic growth rate is going to be the highest among the top-10 emerging economies in the coming days. The agency has attributed the increase in the growth rate estimate to the improvement in the situation in terms of employment.
These things are in favor of India
According to Fitch, the employment rate in India has improved in recent months. The forecast of working age population has also improved. According to Fitch, India’s labor productivity estimates are also better than other countries. However, there is a possibility of negative growth in the participation rate. Due to this, the growth rate of labor supply may decrease compared to 2019.
This is the condition of other countries
Apart from India, Fitch has also improved the growth rate estimates for some other countries. Those countries include Brazil, Mexico, Indonesia, Poland and Turkey. On the other hand, Fitch has reduced the growth rate estimates for major economies like China and Russia. The growth rate estimate for China has been reduced from 5.3 percent to 4.6 percent, while the estimate for Russia has been reduced from 1.6 percent to 0.8 percent.
