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India's growth to surge by 0.2% to 6.4% while China's projection reduced by 0.3%: Fitch Ratings

  • Fitch Ratings has revised India's growth projection to 6.4%, up by 0.2%, and reduced China's projection by 0.3% based on the assessment of potential GDP growth for emerging market economies.
  • India's revised estimate shows a stronger contribution from labour inputs, mainly total employment, while China's supply-side GDP growth potential has been lowered to 4.3% from 4.6%.
  • Fitch predicts India's trend growth at 6.4%, with Total Factor Productivity (TFP) growth expected to align with its long-term average of 1.5% and anticipates a slower pace of growth in the coming years.
  • The shifting growth dynamic among major emerging economies indicates India gaining ground slightly as China experiences a modest slowdown in its economic potential, reflecting the latest assessment by Fitch Ratings.

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