With Increase In Demand, India's Corporates Set To Thrive, Defying Global Economic Trends: Fitch Report

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.