Fitch Ratings increases India’s growth forecast for current fiscal to 7.2% from 7%
For the fiscal years 2025-26 and 2026-27, Fitch projected growth rates of 6.5 per cent and 6.2 per cent, respectively.
For the fiscal years 2025-26 and 2026-27, Fitch projected growth rates of 6.5 per cent and 6.2 per cent, respectively.
The rating agency expected policy continuity to persist despite a slimmer majority. It expected the government to retain its focus on capex push, ease of doing business measures, and gradual fiscal consolidation.
The rated businesses are separately listed (directly or effectively), operate in utility or infrastructure businesses, and with relatively stable cash flow.
Notably, Indian telecom operators continue to have one of the lowest monthly average revenue per user (USD 2.5) and the highest monthly data usage (20 GB) in the world.
Indian power generators in general and renewable companies, in particular, will benefit from the counterparty shift to commercial and industrial (C&I) customers from weak state-owned distribution companies, said Fitch Ratings.
It said a key COVID hotspot is Maharashtra, the state with the largest economic contribution in India at 13-14 per cent of the national GDP.
Fitch's latest economic outlook projected growth at 11 per cent in FY22 then at around 6.5 per cent a year through to FY26. This pace of expansion reflects base effects and the closing of output gaps after the pandemic shock.
The failure of another bank in recent weeks the third failure in the past 16 months underlines the challenges in the financial sector.
GRMs of BPCL, Indian Oil Corp (IOC), Hindustan Petroleum Corp Ltd (HPCL) and Reliance Industries Ltd fell sharply in April-June due to weak industry conditions and inventory losses.
STFC's rating has been affirmed at 'BB' and Rating Watch Negative (RWN) has been removed.
