The purchasing power of the country's urban middle class has decreased! The deep impact on GDP - how the government will overcome the declining GDP

The recent GDP numbers had disappointed Indians. People had not yet recovered from this shock that Fitch has given another shock to the country. The international rating agency has lowered India's GDP growth forecast for the 2024-25 financial year to 6.4 per cent from 7 per cent. However, Fitch expects the economy to maintain momentum based on several indicators.Fitch believes that the consumer market will continue to show signs of improvement in the economy due to purchases in the market due to the needs of the countrymen. At the same time, the help being given by the government to digitalization and infrastructure will become the growth engine of development. Fitch, however, raised its forecast for fiscal year 2026 to 6.5 per cent, slightly higher than 2025. This is much lower than the forecast of 8.2 per cent for FY 2024. Fitch also said that on the basis of asset performance, it can be said that the momentum on the growth front for the Indian economy will continue. In terms of GDP growth, the second quarter of the current year was very bad. Based on the data, there are signs of only 5.4 per cent GDP growth during this period. This is the lowest in the last seven quarters. The main reason for this is the declining purchasing power of the country's urban middle class. This class has been forced to spend less on the necessities of life as income has not increased in comparison to inflation.