%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(27).png "Fitch Ratings has increased India’s potential GDP growth to 6.4% for the next five years")
Key Highlights:
a) 6.2%
b) 6.5%
c) 6.4%
d) 6.1%
- 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.
