S&P retains India’s growth projection at 6% for FY24

S&P retains India’s GDP growth forecast at 6 per cent

S&P Global Ratings on Monday, June 26, 2023, retained India's GDP growth forecast at 6 per cent saying it will be the fastest growing economy among Asia Pacific nations.

The GDP growth forecast for the current and the next fiscal has been kept unchanged from the forecast made in March partly on account of domestic resilience.

Also read: India’s GDP expanded 6.1% in 2022-23’s last quarter

"We see the fastest growth at about 6 per cent in India, Vietnam, and the Philippines, S&P Global Ratings said in its quarterly economic update for Asia-Pacific.

"The medium-term growth outlook remains relatively solid. The Asian emerging market economies remain among the fastest growing ones in our global growth outlook through 2026," said Louis Kuijs, Asia-Pacific chief economist at S&P Global Ratings.

S&P said retail inflation is likely to soften to 5 per cent this fiscal from 6.7 per cent, and the RBI is expected to cut interest rates only early next year.

"In India, under the assumption of normal monsoons, we expect headline consumer inflation to soften to 5 per cent in fiscal 2024 from 6.7 per cent. Softer crude prices and tempering of demand will bring down fuel and core inflation, respectively.