Fitch Ratings Anticipates Surge In Corporate Demand As India's Economy Gains Momentum

Fitch Ratings, a credit rating firm, predicts that strong economic growth in India will lead to an increase in demand for corporate products and services.

The report titled 'India Corporates: Sector Trends 2024' highlights that this growth will balance out potential weaknesses resulting from slowing growth in foreign markets.

Fitch also states that corporate margins will improve in the upcoming fiscal year due to rising demand and reduced input cost pressure.

Fitch Ratings, a global credit rating agency, has stated that India is expected to be among the fastest-growing countries in the world, with a resilient GDP growth rate of 6.5 percent during the fiscal year 2024-25 (FY25). 

Despite a challenging global economic environment, the cumulative impact of recent monetary tightening, and strong domestic demand growth are expected to drive India's economic growth.

It is expected that sectors such as cement, electricity, and petroleum products will experience strong demand in 2023.

High-frequency data is predicted to be sustained well above pre-Covid pandemic levels. Fitch has stated that India's improving infrastructure will also boost steel demand.

The growth of IT services may moderate due to the slowdown in the US and the Eurozone. Fitch also believes that rising domestic auto sales volume will drive revenues of auto suppliers.

Additionally, tourism and travel conditions are expected to improve in 2023.