New Delhi, Aug 28
The upcoming Goods and Services Tax (GST) reforms, which aim to cut rates and boost private consumption, could offset the US tariff impact, BMI, a Fitch Solutions company, said on Thursday, adding that India is likely to remain one of the fastest-growing emerging market economies in Asia through this decade.
India's GDP is projected to hold above 6 per cent, even as additional US tariffs hit certain industries, according to the note by BMI.
"We forecast India's economic growth to steadily slow to just above 6.0 per cent by the decade's end, slightly below the 2010-2019 pre-pandemic average of 6.5 per cent, yet still positioning India among Asia's fastest-growing economies," BMI said.
It further stated that productivity is projected to grow around 5 per cent over the coming decade, providing substantial momentum to GDP growth.