Inflation expected to increase by the end of the year

Fitch Ratings: Fitch Ratings on Thursday maintained India’s growth rate estimate for the current financial year at 6.3 percent. The rating agency has said that despite the strict currency policy and weakness in exports, the economy is showing flexibility. On the other hand, the threat of El Nino has increased the inflation rate forecast at the end of the year. The Indian economy grew at 7.8 per cent in the April-June quarter of the current financial year due to strong services sector activity and strong demand.

According to the report, despite the tight currency policy and weakness in exports, the Indian economy is showing resilience and has overtaken other countries in terms of growth. However, in its September Outlook on Global Economic Outlook, Fitch said there are signs that growth is likely to slow in the July-September quarter.