S&P retains India’s growth forecast at six percent in fiscal year 2024 – Dainik Savera Times

New Delhi: S&P Global Ratings on Monday maintained India’s growth forecast for the current financial year at six percent. The US-based agency kept its forecast at six per cent, citing a slowing global economy, the growing risk of a below-normal monsoon and the pending impact of the rate hike. While the agency viewed the recent rise in vegetable prices as temporary, it raised its full fiscal retail inflation forecast to 5.5 per cent from 5 per cent earlier on higher global oil prices.

“Growth this year will be weaker than in 2022, but our outlook remains broadly favorable,” S&P said in its ‘Economic Outlook for Asia Pacific Quarter-4 2023’ report. “Despite strong expansion in India in the June quarter, we maintain our forecast for FY2024 (ending March 2024) given the slowing global economy, the pending impact of rate hikes and the increased risk of an abnormal monsoon.” March The Indian economy was to grow by 7.2 percent in the financial year 2022-23 ending 2023.

S&P retained its growth forecast for the current fiscal year at six percent, saying India’s economy will grow 6.9 percent in the 2024-25 and 2025-26 fiscal years. India’s consumption growth as well as capital spending remained “strong” in the June quarter, S&P said. On growth in Asia Pacific, S&P said it remains a “multi-speed” region and slightly raised its forecast for 2023 to 3.9 percent amid domestic resilience.