New Delhi, September 24 (IANS) Global rating agency S&P Global Ratings on Tuesday maintained its GDP growth forecast for India for the financial year 2024-25 at 6.8 per cent. It also said that the Reserve Bank of India (RBI) may cut interest rates in October.
In the Economic Outlook released by the rating agency for the Asia-Pacific region, it was said that India’s GDP can grow at the rate of 6.9 percent in the financial year 2025-26. India’s strong growth rate will help RBI in managing inflation.
The report said that in the July budget, the Indian government made it clear that it is committed to fiscal consolidation. At the same time, spending on infrastructure will also continue.
In the budget for the financial year 2024-25, Finance Minister Nirmala Sitharaman allocated a fund of Rs 11.11 lakh crore for capital expenditure. At the same time, the fiscal deficit target for the financial year 2025-26 has been reduced to 4.5 percent.
The report said that inflation has come down below RBI’s target of 4 percent. In such a situation, RBI can reduce interest rates in the MPC meeting to be held in October. We hope that interest rates may be cut twice in the current financial year.
China’s growth rate for 2024 has been reduced from 4.8 percent to 4.6 percent by the global rating agency.
S&P believes that China’s economic growth rate may fall to 4.3 percent by 2025 due to the slowdown in the country’s property sector, weak domestic demand and failure of policymakers to ease fiscal policy.
–IANS
ABS/
