Team Blitz India
NEW DELHI: S&P Global on March 26 raised India’s gross domestic product (GDP) growth forecast for Financial Year 2024-25 (FY25) by 40 basis points to 6.8 per cent.
It expects India to grow at 7.6 per cent in FY24, making the projection in a report called Economic Outlook Asia-Pacific Q2 2024: APAC Bides Its Time On Monetary Policy Easing. The New York-based agency retained India’s GDP growth prediction for FY26 and FY27 at 5 per cent.
“For Asian emerging market (EM) economies, we generally project robust growth, with India, Indonesia, the Philippines, and Vietnam in the lead,” said Louis Kuijs, Asia-Pacific chief economist at S&P Global Ratings.
S&P said that in domestic demand-led economies such as India, Japan, and Australia, the impact of high interest rates and inflation on household spending had reduced sequential GDP growth in the second half of FY24.
However, it said India is likely to see rate cuts of up to 75 basis points in India in calendar year 2024.
