The realm of the economy, just days before the Diwali festival, there’s some good news for India. Credit rating agency Fitch has revised its estimate for India’s economic growth. The agency announced this on Monday, stating that India’s economy could grow at a rate of 6.2 percent in the medium term.
This is a significant increase from the agency’s previous estimate, which had pegged India’s economic growth rate at 5.5 percent. The agency has now raised its estimate by 0.70 percent, a substantial upward revision. Fitch has made this estimate at a time when the country is gearing up to celebrate Diwali in a few days, with the festival falling on November 12th this year.
Fitch also mentioned that India has the best economic growth rate estimates among the top emerging economies in the coming days. The agency attributes the increase in growth rate estimates to improvements in employment. According to Fitch, India’s labor productivity estimate is also better than other countries. However, there are concerns about a negative growth in the labor force participation rate, which could lead to a decrease in labor supply compared to 2019.
Fitch has also made adjustments to growth rate estimates for some other countries. These adjustments include Brazil, Mexico, Indonesia, Poland, and Turkey where growth rate estimates have been revised upwards. On the other hand, for major economies like China and Russia, Fitch has lowered growth rate estimates. China’s growth rate estimate has been reduced from 5.3 percent to 4.6 percent, while Russia’s estimate has been decreased from 1.6 percent to 0.8 percent.