S&P Raises India’s GDP Growth Forecast To 6.4% For FY 24: Strong Domestic Momentum Defying Headwinds

S&P raises India’s GDP growth forecast to 6.4% for FY 24: Strong domestic momentum defying headwinds.

Breaking news: S&P Global boosts India’s GDP growth projection for fiscal year 2024 to 6.4%, citing robust domestic momentum amid challenges.

Get insights on the revised estimates and the economic outlook. S&P increases India’s growth rate forecast, GDP is expected to be 6.4 percent in FY 24.

Big news is coming out regarding India’s GDP: S&P Raises India’s GDP Growth Forecast.

Global rating agency S&P Global has today increased India’s growth rate estimates. S&P Global has increased its estimate from 6 percent to 6.4 percent.

S&P said- We have raised our forecast for India’s GDP growth for FY24 to 6.4 percent from 6 percent, as strong domestic momentum looks to offset headwinds from higher food inflation and weak exports.

Reduced estimates for the next financial year.

S&P Global has reduced its growth forecast for the next financial year (2024-25) to 6.4 percent from 6.9 percent.

S&P said we expect growth to remain subdued in the second half of the financial year amid slower global growth, a high base, and the delayed impact of rate hikes.

As a result, we have reduced our outlook for growth in fiscal year 2025 to 6.4 percent from 6.9 percent.

What is India’s current GDP?

Let us tell you that in the first quarter (April-June) of the current financial year 24, India’s GDP was 7.8 percent. Whereas in the financial year 22-23, India’s GDP was 7.2 percent.

The GDP of these countries may increase.

S&P said growth this year and next is on track to be strongest in emerging market economies – India, Indonesia, Malaysia, and the Philippines – with solid domestic demand.

The rating agency said that fixed investment has improved much more than private consumer spending in India.

Inflation is higher than RBI’s estimate.

S&P said in its report that headline inflation remains above the Reserve Bank of India (RBI) target of 4 percent, which suggests that the interest rate cycle will take some time to turn.

S&P said- In Australia, India, and the Philippines, rising inflation risks are keeping central banks at bay.

Governments are planning to expand fiscal policies in many countries, which may complicate policymaking by central banks.