Fitch Ratings has increased India’s potential GDP growth to 6.4% for the next five years

Current Context: On May 22, 2025, Fitch Ratings raised India’s potential GDP growth to 6.4% for the next five years (2023-2028), up from 6.2% estimated in November 2023.

Key Highlights:

• Economic Resilience: India’s economy rebounded stronger than expected, showing less pandemic scarring.
• Labor Force Impact: The revision is driven by higher labor force participation, offsetting slower productivity growth.
• Global Comparison: While India’s forecast improved, China’s growth projection was lowered to 4.3% due to property market stress.
• Emerging Markets Outlook: Fitch slightly lowered its medium-term growth projections for 10 emerging economies, with India remaining the fastest-growing major economy.

Question:

Q.1 As per Fitch Ratings on May 22, 2025, what is India's revised potential GDP growth rate for the 2023–2028 period?
a) 6.2%
b) 6.5%
c) 6.4%
d) 6.1%

Answer: c) Fitch Ratings revised India's potential GDP growth to 6.4% for 2023–2028, up from the 6.2% projected in November 2023, citing stronger-than-expected economic resilience and higher labor force participation.