press trust of india
Mumbai, Jan 4: The country has the potential to grow at an average of 6.7 per cent per annum over the next five years and will be the fastest growing large economies, global ratings agency Fitch has said.
Even though this rate of growth is lower than the potential and what policymakers have been aspiring for, it is ahead of the 5.5 per cent growth estimated for China and Indonesia, who are joined at the second fastest rank.
Demographic factors, where India is among the youngest countries in the world with a maximum number of people in the working age group, and investment rates will be aiding the country, it said in a report today.
The country is set to witness a continued robust growth in the working-age population in the next five years, bolstering growth potential, it said, adding Indonesia, Mexico, Turkey and Brazil will also benefit from a similar trend.
The GDP recovered to 6.3 per cent in the September quarter from a six-quarter-low of 5.7 per cent in the preceding June quarter. The RBI has massively cut its estimates on growth for the full fiscal to 6.7 per cent, but expects a bounce back in the remaining two quarters at 7 and 7.5 per cent, respectively.
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