S&P Global Ratings has revised India’s growth forecast and now expects the economy to grow 9.5 per cent in 2021-22 (FY22) and 7.0 per cent in 2022-23 (FY23). India’s external position is very strong and this is quite supportive of India’s sovereign rating despite the fact that we have had this deterioration in fiscal position concurrently. India is expected to post strong economic growth in the coming quarters, even as inflation, led by food prices, is likely to remain elevated.
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