India's economic growth sparks optimism as corporates anticipate profit surge

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Key Points

Fitch Ratings forecasts a significant uptick in the profitability of Indian corporates, propelled by the country's robust economic growth...

Despite challenges stemming from sluggish overseas markets, India's resilient GDP growth, projected at 6.5 per cent in the financial year ending March 2025 (FY25), positions the nation among the world's fastest-growing sovereigns...

The anticipated economic expansion is expected to fuel demand across various sectors, contributing to a substantial increase in profits...

This surge, coupled with easing input cost pressures, is poised to provide Indian corporates with ample rating headroom, mitigating concerns related to higher capital expenditures...

In the realm of information technology (IT) services, while the slowdown in demand from the US and eurozone may temper sales growth, Fitch Ratings anticipates an offsetting effect.. Easing employee attrition and wage pressure within the IT services industry should bolster profitability, ensuring a solid rating headroom for rated companies...

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