Rising demand and easing input cost pressure should boost
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.