India's resilient economic growth will boost demand of corporates: Fitch Ratings

Leading credit rating firm Fitch Ratings expects that India's resilient economic growth will boost the demand of the corporates. In its latest research report on 'India Corporates: Sector Trends 2024', Fitch said that this is a sequel to the robust performance of the corporates in 2023 and will offset weakness from slowing growth in the key overseas markets.

Rising demand and easing input cost pressure should boost the margins of the corporates in the next financial year, Fitch said. Fitch said that with strong domestic demand growth, it is expected that India will be among the world's fastest-growing countries, with resilient GDP growth of 6.5 per cent during the fiscal 2024-25.

This is despite a challenging global backdrop and the cumulative impact of the recent monetary tightening, it said. Sectors like cement, electricity and petroleum products are expected to witness a strong demand with high-frequency data in 2023 sustained well above pre-COVID pandemic levels.

Fitch said that India's improving infrastructure will also boost steel demand. Slowing down in the US and the Eurozone is likely to moderate growth of the IT services. Fitch said rising domestic auto sales volume should drive revenues of the auto suppliers, while travel and tourism conditions also improved in 2023.