Indian economic growth in 2023 will get support from domestic demand recovery after the Covid-19 pandemic, as per the report
The American credit rating agency, S&P Global Ratings on Monday estimated India’s economic growth at 7.3 per cent in the current fiscal with downside risks.
In its economic outlook for Asia Pacific, the agency said that we have retained our growth outlook for India at 7.3 per cent for the fiscal year 2022-2023 and 6.5 per cent for the next fiscal year.
It also mentioned that inflation is likely to remain above the Reserve Bank of India’s (RBI’s) upper tolerance threshold of 6 per cent till December 2022.
Indian economic growth in 2023 will get support from domestic demand recovery after the Covid-19 pandemic, the report said.
Few other agencies have cut India’s gross domestic product (GDP) growth forecast amid higher inflation and rising policy interest rates.
Earlier, the Asian Development Bank (ADB) downgraded India’s economic growth projection for 2022-23 to 7 per cent from 7.2 per cent.
According to the bank, the step came due to the higher-than-expected inflation in India and monetary tightening by the Reserve Bank of India.
The ADB said in a report that the Indian economy grew 13.5 per cent year-on-year (YoY) in the first quarter of 2022-23, Witnessing strong growth in services.
Fitch also slashed India’s GDP growth forecast to 7 per cent in the financial year 2023 compared with 7.8 per cent in its earlier projection. The move came on the back of a global slowdown and tighter monetary policy.