Fitch Ratings, one of leading credit rating firms, expects India’s resilient economic growth will boost demand of the corporates, the PTI reported. 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.
Fitch said that rising demand and easing input cost pressure should boost margins of the corporates in the next financial year. According to the credit rating firm, 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 such as 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. The agency said that India’s improving infrastructure will also boost steel demand. Slowing down in the US and the Eurozone is likely to moderate growth of the IT services, while adding that surging domestic auto sales volume should drive revenues of the auto suppliers, while travel and tourism conditions also improved in 2023.
Recently, US-based rating agency S&P Global recenty said that India to be the fastest growing major economy in the next three years, with GDP growth reaching 7 per cent by 2026, from 6.4 per cent projected expansion in the current fiscal. S&P in its report titled ‘Global Credit Outlook 2024: New Risks, New Playbook’, said, “India is set to become the third-largest economy by 2030, and we expect it will be the fastest growing major economy in the next three years. A paramount test will be whether India can become the next big global manufacturing hub, an immense opportunity. Developing a strong logistics framework will be key in transforming India from a services-dominated economy into a manufacturing-dominant one.”
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