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Given the stronger-than-expected outturn in the July-September quarter with GDP growth at 6.3 per cent, Fitch Ratings has retained India's economic growth forecast at 7 per cent for the current fiscal (FY23), but cut projections for the next two financial years saying the country is not impervious to global developments. In its December edition of the Global Economic Outlook, Fitch projected India's GDP to grow at 7 per cent in the current fiscal, at a slower rate of 6.2 per cent in 2023-24 and at 6.9 per cent in 2024-25.

In September, Fitch projected 7 per cent growth for the current fiscal, followed by 6.7 per cent in 2023-24 and 7.1 per cent growth in 2024-25. It mentioned ‘India is expected to record one of the fastest growth rates among emerging markets in our Fitch20 coverage this year.’

Besides, it revised down the world GDP forecasts for 2023 as central banks intensify their fight against inflation and the outlook for China's property market deteriorates. It now expects the world GDP to grow by 1.4 per cent in 2023, revised down from 1.7 per cent projected in September. China 2023 growth forecast too has been cut to 4.1 per cent, from 4.5 per cent earlier, as prospects for a recovery in housebuilding fade.