S&P ups India's FY'24 growth forecast to 6.4%, robust domestic momentum to offset headwinds

 S&P Global Ratings raised India’s growth forecast for the current financial year to 6.4%, from 6%, saying that robust domestic momentum has offset headwinds from high food inflation and weak exports

 S&P Global Ratings on November 27 raised India's growth forecast for the current financial year to 6.4%, from 6%, saying that robust domestic momentum has offset headwinds from high food inflation and weak exports.

However, it cut the growth estimates for the next fiscal (2024-25) to 6.4%, from 6.9%, as it expects growth to slow on a higher base, subdued global growth and lagged impact of interest rate hike.

"We have revised up our projection for India's GDP growth for fiscal 2024 (ending in March 2024) to 6.4 per cent, from 6 per cent, as robust domestic momentum seems to have offset headwinds from high food inflation and weak exports," S&P said.

The estimates of S&P is a shade higher than other international agencies. The IMF, World Bank, ADB, and Fitch expects India's GDP to expand 6.3 per cent in the current fiscal.

The RBI has projected GDP growth at 6.5% for current as well as next financial year.

The Indian economy grew 7.2% in the 2022-23 fiscal year ended March 2023.

The country's real GDP rose 7.8% year-on-year in the June quarter, up from 6.1% in the March quarter.