India’s Economic Growth Forecast Increased- Analysis

India’s Economy Expected to Grow 6.4% in 2024, S&P Revises Forecast Upwards

The S&P Global Ratings has revised its growth forecast for the Indian economy, predicting that it will perform better than initially expected in 2024. The rating agency projects India’s gross domestic product (GDP) to grow by 6.4%, an increase from the previous forecast of 6%. The agency attributes the upward revision to the strong domestic momentum that has offset challenges such as high food inflation and weak exports. This projection is in line with the figure set by India’s central bank, which expects a growth rate of 6.5% in 2024.

Despite inflation in the country remaining above the Reserve Bank of India’s (RBI) target of 4%, the S&P Global Ratings believes that it will not hinder growth prospects. The agency states that the spike in food inflation in the July-September quarter has had minimal impact on the underlying inflation dynamics. Additionally, S&P expects interest rates to decrease by 100 basis points by March 2024.

On the other hand, S&P has lowered its growth forecast for the financial year 2025 to 6.4% from the previous prediction of 6.9%. The agency anticipates a recovery in the Indian economy only in 2026-2027 due to subdued global growth, a higher base, and the delayed impact of rate hikes by the RBI.

The revision by S&P aligns with the International Monetary Fund’s similar upgrade, which raised India’s growth forecast to 6.3% in October. This new projection is consistent with the World Bank’s forecast of 6.3% growth for the next year.

Overall, the article provides information regarding S&P Global Ratings’ revised growth forecast for the Indian economy. The use of quotes and sources from the agency helps establish the credibility of the information. However, the article does not provide insights from any other reliable sources or experts. Additionally, there is no analysis of potential biases or any evaluation of the article’s reliability.

In terms of presentation, the article is concise and discusses important figures and factors related to the forecast. It presents the information in a straightforward manner without any sensationalism or exaggeration. The inclusion of a hyperlink to a related article adds context and the opportunity to explore further.

It is essential to approach this information with caution and consider multiple sources for a comprehensive understanding of the Indian economy’s growth prospects. The prominence of fake news and the biases that can be present in media outlets may influence the public’s perception of the information presented. Therefore, fact-checking and relying on verified sources are crucial in navigating the complexities of economic forecasts.

Source: RT news: India’s growth forecast raised