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The report indicates a sequential rise in India's GDP growth for the mentioned quarter, buoyed by sustained festival-related consumer demand.

Fitch has also lowered its estimate for the growth of 10 emerging economies to 4 percent from the earlier estimate of 4.3 percent. These adjustments in growth forecasts reflect changing economic conditions and outlooks in the respective countries.

The Reserve Bank of India (RBI) has projected India’s Gross Domestic Product (GDP) to grow at 6.5 per cent in Financial Year (FY) 24.

A report released by the FICCI on Thursday based on data from international agencies states that the impact of India’s illicit financial flows works out to around 5 per cent of the country’s GDP.

However this projection by IMF is still lesser than the 6.5 per cent growth projected by RBI for 2023-24. The IMF has also cautioned that persistent challenges could impact the medium term outlook.

Capex growth has largely held up on higher government (Centre and state) capex and strong demand for residential real estate. However, the pick-up in private corporate capex remains gradual on weak goods export demand and global growth uncertainty. Finally, while India's goods exports have contracted for the past five months, services exports have remained largely stable, it said.

According to World Bank's classification, a country with a per capita income of $13,205 or more in 2022-23 is classified as a high-income country. "To achieve this target, the required real GDP compounded annual growth rate (CAGR) for India works out to be 7.6 per cent during 2023-24 to 2047-48," the RBI bulletin noted.

"India's economy has been showing broad-based strength - with GDP up by 6.1 per cent year-on-year in the first quarter of 2023-24 and auto sales, PMI surveys and credit growth remaining robust in recent months - and we have raised our forecast for the fiscal year ending March 2024 (2023-24) by 0.3 percentage points to 6.3 per cent," Fitch said in a statement.

"We are now prepared to say that risks to our GDP growth forecast of 6.5 per cent for 2023-24 are now more evenly balanced than a few months ago when downside risks to the forecast were greater," Chief Economic Adviser (CEA) V. Anantha Nageswaran told reporters after GDP data for the fourth quarter of 2022-23 and for the entire fiscal was released.

"The 2022-23 GDP growth figures underscore the resilience of the Indian economy amid global challenges," he tweeted. He added that "this robust performance along with overall optimism and compelling macro-economic indicators exemplify the promising trajectory of our economy and the tenacity of our people".