S&P retains India’s economic growth at 6%

New Delhi, Mar 28 (KNN) For the fiscal year starting from April 1, 2023, the Global rating agency S&P Global Ratings on Monday projected India’s economic growth at 6 per cent.

Making no changes the rating agency sees the country’s GDP at 6.9 per cent in the financial year 2024-25.

It sees inflation rate easing to 5 per cent in 2023-24 fiscal, from 6.8 per cent in the current financial year.

In the quarterly economic update for Asia-Pacific, S&P saw India’s gross domestic product (GDP) likely growing by 7 per cent in the current financial year ending March 31 (2022-23), before slowing to 6 per cent in the next 2023-24 fiscal.

“In India, domestic demand has traditionally led the economy. But it has become more sensitive to the global cycle lately, in part due to rising commodity exports; and its year-on-year GDP growth slowed to 4.4 per cent in the fourth quarter (Q3 FY23),” the rating agency said.

It has suggested a little slack in the economy due to the pronounced core inflation in India.

S&P expects the Reserve Bank of India (RBI) to raise its already high policy rate further following a recent upside surprise to inflation.  (KNN Bureau)