New Delhi, Jun 19 (KNN) In its annual "Global Economic Outlook" publication, Fitch Ratings has revised upward its forecast for India's real GDP growth in fiscal year 2024-25 to 7.2 per cent, up from its previous estimate of 7 per cent.

The ratings agency cites a rise in consumer spending and continued growth momentum signalled by purchasing managers' survey data as key drivers behind the upgraded outlook.

The 7.2 per cent growth projection for FY24-25 is in line with the Reserve Bank of India's (RBI) latest forecast released earlier this month.

Both agencies highlight resilient high-frequency economic indicators, an expected above-normal monsoon benefiting agriculture and rural demand, and sustained strength in manufacturing and services as supporting factors for a revival in private consumption expenditure.

Looking ahead, the agency expects India's growth to moderate to 6.5 per cent in FY25-26 and 6.2 per cent in FY26-27, driven by consumer spending and investment trends.

On monetary policy, Fitch anticipates the RBI will enact one final 25 basis point rate cut to 6.25 per cent in 2023.

Globally, Fitch has raised its 2024 world growth forecast from 2.4 per cent to 2.6 per cent, citing improving European recovery prospects, a revival in China's export sector, and stronger momentum in emerging markets outside China.

While the U.S. economy is slowing, Fitch's 2024 growth estimate there remains unchanged at 2.1 per cent.

(KNN Bureau)