Finally the American credit rating agency S&P Global Ratings also realized the threat of the Indian economy. The credit rating agency on Tuesday increased the estimate of India’s growth rate i.e. GDP rate for the next financial year 2024-25 to 6.8 percent. The agency had in November last year projected India’s growth at 6.4 per cent in fiscal year 2024-25 amid strong domestic momentum. According to language news, the Indian economy is estimated to grow by 7.6 percent in the current financial year 2023-24.
strong growth forecast
According to the news, S&P said in its ‘Economic Outlook’ for Asia Pacific that we forecast generally strong growth for Asian emerging market (EM) economies, with India, Indonesia, Philippines and Vietnam leading the way. According to the agency, the impact of higher interest rates and inflation on household spending power in largely domestic demand-driven economies such as India, Japan and Australia has moderated sequential GDP growth in the second half.
S&P has confidence in India’s GDP rate
S&P said that we expect India’s real GDP growth rate to be 6.8 percent in the financial year 2024-25 (ending March 2025). The agency has also said that there is a possibility of a cut in interest rates in India by 75 basis points i.e. 0.75 percent in the calendar year 2024. In India, slow inflation, low fiscal deficit and low US policy rates will lay the groundwork for the Reserve Bank of India to start cutting rates.
What did you say about China?
S&P Global Ratings also said China’s GDP growth is likely to slow to 4.6 percent in fiscal 2025 from 5.2 percent in fiscal 2025. S&P said our forecast factors in continued asset weakness and modest macro policy support. If consumption remains weak, deflation remains a risk and the government responds by further encouraging manufacturing investment.
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