S&P hails Indian economy, now raises GDP growth forecast for fiscal 2024

Constraints caused by food inflation and weak exports seem to be disappearing.- India TV Paisa
Photo: ANI Worries caused by high food inflation and weak exports appear to be abating.

In the current era of geopolitical tensions, the S&P also had to accept the irony of the Indian economy and raise its GDP growth estimates for the current fiscal year. S&P Global Ratings on Monday raised India’s growth forecast for the current fiscal year 2023-24 to 6.4 percent from 6 percent. According to Bhasha News, the U.S. agency said that stronger domestic momentum appears to be overcoming the constraints posed by high food inflation and weak exports, which have pushed up the growth estimate.

This change was made for the financial year 2024-25.

However, S&P Global Ratings in its latest report cut its growth forecast for the next fiscal year 2024-25 to 6.4 percent, as it believes higher base effects and slower global growth are the cause. Growth will slow in March from the second half of the current fiscal (October). S&P said we have raised our forecast for India’s GDP growth for fiscal 2023-24 (ending March 2024) by 6. percent increased to 6.4 percent, because the strong domestic momentum is full of high food inflation and weak exports. Obstacles.

GDP grew by 7.8 percent in the April-June quarter.

Growth is expected to slow in the second half of the fiscal year amid weak global growth, a high base and the lagged impact of rate hikes, the rating agency said. This is why we have lowered our growth forecast for FY2025 to 6.4% from 6.9%. The Indian economy grew by 7.2 percent in the fiscal year 2022-23 (ending March 31, 2023). India’s GDP grew by 7.8% in the April-June quarter. India has also developed recently in the export sector.

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