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Business News/ Economy / India's economic growth to boost demand of corporates, says Fitch Ratings
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India's economic growth to boost demand of corporates, says Fitch Ratings

India's economic growth to boost demand of corporates: Fitch Ratings

FILE PHOTO: FILE PHOTO: The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London,Britain, March 3, 2016. REUTERS/Reinhard Krause/File Photo/File Photo (REUTERS)Premium
FILE PHOTO: FILE PHOTO: The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London,Britain, March 3, 2016. REUTERS/Reinhard Krause/File Photo/File Photo (REUTERS)

Credit rating firm Fitch Ratings, anticipates that India's robust economic growth will stimulate corporate demand. According to its latest research report, titled 'India Corporates: Sector Trends 2024,' Fitch attributes this expectation to the resilient performance of corporates in 2023, counteracting any weaknesses stemming from slowing growth in key international markets.

Fitch predicts that increased demand and a reduction in input costs will contribute to enhanced profit margins for corporates in the upcoming fiscal year. 

Despite a challenging global environment and the cumulative effects of recent monetary tightening, Fitch remains optimistic about India's position as one of the world's fastest-growing countries, projecting a resilient GDP growth of 6.5 percent for the fiscal year 2024-25.

Specific sectors such as cement, electricity, and petroleum products are anticipated to experience substantial demand, with high-frequency data in 2023 consistently surpassing pre-COVID pandemic levels. 

Fitch also highlights the positive impact of India's improving infrastructure on steel demand. While growth in IT services may be moderated by slowdowns in the US and the Eurozone, Fitch expects rising domestic auto sales to bolster revenues for auto suppliers. Additionally, improvements in travel and tourism conditions are noted for the year 2023.

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Published: 24 Dec 2023, 01:36 PM IST
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