Fitch Ratings has raised India’s growth forecast for the current fiscal year to 6.9% from 6.4%, citing stronger-than-expected expansion in the June quarter and the economy’s resilience despite external shocks.
The ratings agency, however, expects momentum to moderate during the rest of the fiscal year as below-normal monsoon rainfall, elevated inflation and signs of slowing manufacturing and services activity weigh on growth. Fitch also expects the Reserve Bank of India (RBI) to raise its policy rate by 25 basis points in October.
