New Delhi: Fitch Ratings on Thursday revised India’s GDP growth outlook for the current financial year to 7.4 per cent, up from its earlier estimate of 6.9 per cent, attributing the upgrade to stronger consumer spending and improved sentiment following recent GST reforms.

In its December Global Economic Outlook, the agency noted that India’s GDP grew by 8.2 per cent in the July–September quarter, accelerating from 7.8 per cent in the previous quarter.

Private consumption has emerged as the key driver of expansion, supported by rising real incomes, improved consumer confidence and the impact of GST reductions introduced in September . The government slashed GST on around 375 items, making more than 99 per cent of consumer goods cheaper.

Fitch expects India’s growth to moderate to 6.4

See Full Page