S&P Global Ratings in its latest report has raised India's growth forecast for the current financial year (FY24) to 6.4 per cent, from 6 per cent, saying that robust domestic momentum has offset headwinds from high food inflation and weak exports.
However, it cut the growth estimates for the next fiscal (FY25) to 6.4 per cent, from 6.9 per cent, as it expects growth to slow on a higher base, subdued global growth and lagged impact of interest rate hike.
It stated ‘We expect growth to slow in the second half of the fiscal year amid subdued global growth, a higher base, and the lagged impact of rate hikes. As a result, we have lowered our outlook for growth in fiscal 2025 to 6.4%, from 6.9%.’
The estimates of S&P is a shade higher than other international agencies. The IMF, World Bank, ADB, and Fitch expects India's GDP to expand 6.3 per cent in the current fiscal.
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