Another rating agency has slashed India’s GDP growth forecast. After rating agency Icra, India Ratings has now reduced its growth forecast for India to 7.0-7.2 per cent in the next financial year. India Ratings has made different estimates keeping in mind the two scenarios.
On Tuesday, rating agency Icra cut India’s GDP growth forecast from eight to 7.2 per cent. Let us tell you that the Reserve Bank of India (RBI) has projected a growth of 7.8 percent in the Indian economy in the next financial year. This is to say that the estimates of both the rating agencies are less than the RBI.
What India Ratings has to say: The rating agency said consumer sentiment was affected by the Russia-Ukraine conflict, leading to rising commodity prices and consumer inflation. The rating agency expects retail inflation to average around 5.8 per cent if oil prices remain elevated for three months and oil prices remain high for six months in FY23. Its earlier estimate was 4.8 per cent.