Fitch Ratings, a leading credit rating firm, anticipates that India's robust economic growth will stimulate corporate demand, according to its latest research report titled 'India Corporates: Sector Trends 2024.'
This positive outlook follows the strong performance of corporates in 2023 and is expected to counterbalance challenges arising from slowing growth in key international markets.
The report highlights that increasing demand and a reduction in input costs will contribute to improved profit margins for corporates in the upcoming fiscal year as reported by The Economic Times.
Despite a challenging global environment and the combined impact of recent monetary tightening measures, Fitch projects India to be among the world's fastest-growing countries, achieving a resilient GDP growth rate of 6.5 per cent during the fiscal year 2024-25.
Certain sectors such as cement, electricity, and petroleum products are poised to experience robust demand, with high-frequency data in 2023 consistently surpassing pre-COVID pandemic levels.
Fitch notes that the ongoing enhancement of India's infrastructure will further stimulate steel demand.
While the growth of IT services may moderate due to a slowdown in the United States and the Eurozone, rising domestic auto sales are expected to bolster revenues for auto suppliers.
Additionally, improvements in travel and tourism conditions in 2023 are noted in the report.
Bhuvan Krishna is Staff Writer at Swarajya.
An appeal from Swarajya
At Swarajya, we rely on our readers' support through subscriptions to sustain our media platform. Unlike larger conglomerates, we are unable to relentlessly chase advertising money — our model is largely built on your patronage.
Your support has never been more crucial. We work tirelessly to deliver 10-15 high-quality articles daily, ensuring you receive insightful content from 7 AM to 10 PM.
If you believe India's story has to be articulated in a way it has never been done before without shrugging it off, become a patron (or) subscribe now for ₹̶2̶4̶0̶0̶ ₹1999 and get 12 print issues, unlimited digital access for 1 year, a special India that is Bharat T-shirt (Offer ends soon).
We are counting on you!