Mumbai, Jan 4 (PTI) The country has the potential togrow at an average of 6.7 per cent per annum over the nextfive years and will be the fastest growing large economies,global ratings agency Fitch has said.Even though this rate of growth is lower than thepotential and what policymakers have been aspiring for, it isahead of the 5.5 per cent growth estimated for China andIndonesia, who are joined at the second fastest rank.Demographic factors, where India is among the youngestcountries in the world with a maximum number of people in theworking age group, and investment rates will be aiding thecountry, it said in a report today.The country is set to witness a continued robustgrowth 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 similartrend.The GDP recovered to 6.3 per cent in the Septemberquarter from a six-quarter-low of 5.7 per cent in thepreceding June quarter. The RBI has massively cut itsestimates on growth for the full fiscal to 6.7 per cent, butexpects a bounce back in the remaining two quarters at 7 and7.5 per cent, respectively.Elaborating on its slower growth estimate on China,the agency the significant slowdown from recent historicalaverage growth is on a deteriorating demographic outlook and aslowdown in the rate of capital accumulation as the investmentrate has declined.The agency said India has an "impressive rate ofcapital accumulation per worker" which helps in maintainingthe economic growth and also in upping the living standards.However, it said going by total factor productivity, whichcaptures improvements in the efficiency of the productionprocess, India has some catching-up to do."Total factor productivity performance has also beensurprisingly weak given its low level of GDP per capita," thereport said.It can be noted that Fitch's rival Moody's had surprised by revising upwards the sovereign ratings by a notch to Baa2, backing the reform processes undertaken by the government.
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