Fitch Ratings raises India’s GDP growth potential by 0.2 percentage points to 6.4 percent over next 5 years

Global rating agency Fitch Ratings has raised India’s GDP growth potential by 0.2 percentage points to 6.4 per cent over the next five years. The move comes following a sharper rise in the country’s labour force participation rate in recent years. Fitch highlighted that the revised estimate for India shows a stronger contribution from labour inputs, mainly total employment.

At the same time, the global rating agency has scaled down China’s growth projection by 0.3 percentage points to 4.3 per



cent from 4.6 per cent earlier.

The changes are part of Fitch’s revised assessment of potential GDP growth for 10 emerging market economies over the next five years.

India continues to remain the world’s fastest growing major economy and the only country expected to clock over 6 per cent growth in the next two years, according to an IMF report released last month. The IMF has trimmed the growth forecast for over 120 countries.