S&P Global Ratings has maintained its earlier projection for India’s economic growth rate at 6% in the fiscal year starting from April 1, with a further increase to 6.9% in the following year. In its latest quarterly economic update for Asia-Pacific, S&P predicted that the inflation rate would decline to 5% during the 2023-24 fiscal year, down from the current financial year’s 6.8%.
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S&P: India’s gross domestic product (GDP) growth:
The report stated that India’s gross domestic product (GDP) is likely to grow by 7% in the present financial year, which ends on March 31, 2023, before slowing down to 6% in the subsequent fiscal year 2023-24.
The report also highlighted that India is leading with an average growth rate of 7% during 2024-2026.
S&P: India’s Steady Growth Rate, Exports and more:
The rating agency has projected that GDP will increase to 6.9% in the next two financial years, 2024-25 and 2025-26, with a further rise to 7.1% in 2026-27.
The report stated that India’s economy has traditionally been driven by domestic demand, but has become more responsive to the global economic cycle in recent times, partly due to the increased exports of commodities.
As a result, the year-on-year GDP growth rate slowed to 4.4% during the fourth quarter (October-December 2022), according to the rating agency.
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