India to post strong GDP growth in coming quarters: S&P

Economy expected to clock 9.5% growth in the current fiscal year; GDP growth essential to curb further erosion of fiscal settings.

India is expected to post strong economic growth in the coming quarters, even as inflation, led by food prices, is likely to remain elevated, S&P Global Ratings said on Wednesday. The economy is expected to clock 9.5% growth in the current fiscal year, followed by 7% expansion in the next year, it said, adding that high nominal GDP growth would be important for ensuring fiscal consolidation going forward. “Given India’s weak fiscal settings and high stock of debt around 90% of GDP, the nominal GDP growth is going to be very important to prevent any further erosion of fiscal settings in the country and to enable some degree of fiscal consolidation going forward,” S&P Global Ratings Director (Sovereign) Andrew Wood said.