According to the international credit rating agency Fitch Ratings, India’s economic growth will accelerate to 7.3 percent in the current financial and 7.5 percent in the next.
In its second-quarter Sovereign Credit Overview for Asia Pacific region, Fitch said the growth rate will accelerate as money supply has recovered to pre-demonetization levels and economic disruption due to the rollout of the Goods and Services Tax (GST) have diminished.
The agency said that India’s ratings balance a strong medium-term growth outlook and favorable external balances against a weak fiscal position and difficult business environment.
But, the country’s business environment is likely to improve gradually with the implementation and continued broadening of the government’s structural-reform agenda, the agency said.