India has the highest medium-term growth potential among the largest emerging markets (EMs) which is projected at 6.7 per cent per annum, Fitch Ratings said on Thursday.
According to Fitch Ratings' Global Economic Outlook (GEO) forecast, the new estimates of supply-side potential GDP growth over the next five years highlight the importance of demographic factors and investment rates.
The report "Investment & Demographics Key to EM Growth Potential" places India at the top of the list among the 10 largest EMs namely China, India, Brazil, Russia, Korea, Indonesia, Mexico, Poland, Turkey and South Africa.
"India's projected potential growth is 6.7 per cent per annum (p.a.). China and Indonesia jointly rank second-highest, both with projected potential growth of 5.5 per cent p.a," the ratings agency said.
"India, in particular, but also Indonesia, Mexico, Turkey and Brazil are set to see continued robust growth in the working-age population in the next five years, bolstering GDP growth potential."