S&P Raises Forecast For India’s GDP Growth
Key Points
S&P Ratings has raised its forecast for India’s GDP growth during the current financial year to 6.4 per cent from the earlier 6 per cent.
New Delhi, Nov 28: S&P Ratings has raised its forecast for India’s GDP growth during the current financial year to 6.4 per cent from the earlier 6 per cent.
“We have revised upwards our projection for this fiscal as robust domestic momentum seems to have offset headwinds from high food inflation and weak exports,” S&P Global Ratings chief economist for Asia-Pacific Louis Kuijs said in a research note on the outlook for the region.
However, the rating agency has lowered its outlook for growth in the next financial year (2024-25) to 6.4 per cent from 6.9 per cent earlier, taking into account a higher base impact and subdued global growth.
S&P’s higher projection for the current financial year (2023-24) is in line with other agencies, but still lower than the government and Reserve Bank of India projection of 6.5 per cent.
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✨The IMF, World Bank, ADB and Fitch expect India’s GDP to expand 6.3 per cent in the current fiscal.
The Indian economy grew 7.2 per cent in the 2022-23 financial year and 7.8 per cent in the April-June quarter.
The second quarter GDP data will be released later this week.
Economists expect the GDP growth to slow down in July-Sept quarter due to the erratic monsoon this year.
On inflation, S&P said the surge during the second quarter is unlikely to have an impact on overall inflation.
“Still, headline inflation remains above the RBI's target of 4 per cent, suggesting it will be a while before the rate cycle turns,” S&P said.
(IANS)