Fitch raises India growth forecast

Fitch Ratings on Friday upped India’s growth forecast for the current fiscal to 7.8% from 7.4% earlier, but flagged rising oil bill and higher interest rates as key concerns.

Fitch, in its Global Economic Outlook, said it expects inflation to rise to the upper end of the central bank’s target band (4% plus-minus 2%) on relatively high demand-pull pressures and rupee depreciation.

“We have revised up our forecast for FY2018-2019 growth to 7.8% from 7.4% on the back of the better-than-expected 2Q18 outturn. India’s growth likely peaked in 2Q18 (April-June) though,” Fitch Ratings said in the Global Economic Outlook.