S&P holds 6% growth forecast for FY24

New Delhi: S&P Global Ratings on Monday retained India’s growth forecast for current fiscal at six per cent citing slowing world economy, rising risk of subnormal monsoons and delayed effect of rate hike. While retaining its growth forecast for the current fiscal at six per cent, S&P also maintained that India’s economy will grow 6.9 per cent in both 2024-25 and 2025-26 fiscal years.

The US-based agency sees the recent spike in vegetable price inflation as being temporary, but revised up the full fiscal retail inflation forecast to 5.5 per cent, from five per cent earlier, on higher global oil prices.

“Growth this year will be weaker than in 2022, but our outlook remains broadly favourable. Notwithstanding the strong expansion in India in the June quarter, we maintain our forecast for fiscal 2024 (ending March 2024), given the slowing world economy, the delayed effect of rate hikes, and the rising risk of subnormal monsoons,” S&P said in its Economic Outlook for Asia Pacific Q4 2023 report. Indian economy grew 7.2 per cent in 2022-23 fiscal year, which ended March 2023.