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.
RIL's acquisition of Future Group's warehousing and logistics business, in addition to its stores, will help expand the scale of JioMart, RIL's online grocery platform.
India's GDP shrank by a staggering 24 per cent year-on-year amid the imposition of one of the most stringent global nationwide lockdown.
The recent increase in Asian spot LNG prices to above USD 3 per MMBTU should limit the extent of the losses, but a potentially slower demand recovery post lockdown is likely to keep the margin in the red.
Fitch said India's auto demand continues to face several challenges, while it forecasts overall industry volume to decline over 20 per cent.
SBI is 57.9 per cent state-owned and has a much broader policy role than peers.
