S&P Global Ratings in its economic outlook for Asia Pacific said that it has retained India's gross domestic product (GDP) growth forecast for the current financial year (FY25) at 6.8 per cent and said high interest rates and lower fiscal spur would temper demand.
Its estimates for FY25 is lower than that of the Reserve Bank of India (RBI), which earlier this month projected the Indian economy to expand at 7.2 per cent in the current fiscal, on the back of improving rural demand and moderating inflation.
For the fiscal years 2025-26 and 2026-27, it projected growth rates of 6.9 per cent and 7 per cent, respectively. It said India's economic growth continues to surprise on the upside with the economy growing 8.2 per cent in fiscal year 2023-24.
