Domestic growth offsets global slowdown for cos: Fitch

Resilient GDP Growth

• Economy will grow 6.5% in FY25
• Global headwinds
• Recent monetary tightening
• Slowdown in US, Eurozone to moderate IT growth

Kolkata: Leading credit rating firm Fitch Ratings expects that India’s resilient economic growth will boost demand for the corporates. In its latest research report on ‘India Corporates: Sector Trends 2024’, Fitch said that this is a sequel to the robust performance of the corporates in 2023 and will offset weakness from slowing growth in the key overseas markets.

Rising demand and easing input cost pressure should boost margins of the corporates in the next financial year, Fitch said.

Fitch said that with strong domestic demand growth, it is expected that India will be among the world’s fastest-growing countries, with resilient GDP growth of 6.5 per cent during the fiscal 2024-25. This is despite a challenging global backdrop and the cumulative impact of the recent monetary tightening, it said. Sectors like cement, electricity and petroleum products are expected to witness a strong demand with high-frequency data in 2023 sustained well above pre-Covid pandemic levels.