Team Blitz India
NEW DELHI: S&P Global Ratings has raised India’s gross domestic product (GDP) growth forecast for the current financial year (FY24), saying robust domestic momentum seems to have offset headwinds from high food inflation and weak exports.
The US-based ratings agency, in its report released on November 27 on the growth outlook for the Asia-Pacific region, revised upwards India’s growth projection for FY24 by 0.4 percentage points to 6.4 per cent.
However, S&P has cut the country’s growth estimates for FY25 to 6.4 per cent. “We expect growth to slow in the second half of the fiscal year amid subdued global growth, a higher base, and the lagged impact of rate hikes. As a result, we have lowered our outlook for growth in FY25 to 6.4 per cent from 6.9 per cent,” the report stated.
It mentioned that India’s GDP exceeded the 2019 level by 15.5 per cent in the first half of the current fiscal year, and the fixed investment had recovered considerably more than private consumer spending.
The report also noted that the lingering inflation posed a risk to the forecast.