New Delhi: Fitch Ratings on Thursday raised the country's average annual growth potential until 2028 to 6.4 per cent, up from 6.2 per cent estimated in November 2023.

The revision comes a day after global financial services firm Morgan Stanley on Wednesday revised India’s GDP growth forecast upward to 6.2 per cent for FY26 and 6.5 per cent for FY27, citing strong domestic demand as the key driver of economic momentum amid ongoing external uncertainties. 

Updating the five-year-ahead potential GDP projections, Fitch said the economy bounced back 'more strongly than we expected at the time of the 2023 report, suggesting a less adverse scarring impact from the pandemic shock'.

However, it has slightly lowered its medium-term potential GDP projections for the 10 emerging market economies covered in the Global Economic Outlook (GEO) over the next five years.

"Our new projection sees growth at 3.9 per cent on a GDP weighted basis, down from 4 per cent in our previous assessment published in November 2023," it said, adding that "Our unweighted average EM10 potential growth projection is 3.1 per cent, just higher than the 2023 report."

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