S&P Global Ratings kept India’s Gross Domestic Product (GDP) prediction financial year 2023 at 6 per cent, the report said on Monday given slowing global economy, an increased chance of below-normal monsoons, and a delayed impact of rate hike.
The rating agency believes the recent increase in vegetable price inflation is only temporary, but due to rising global oil costs, it increased its prior projection for full fiscal retail inflation to 5.5 per cent from 5 per cent.
“Growth this year will be weaker than in 2022, but our outlook remains broadly favorable. 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,” the report said. In the fiscal year 2022–23, which concluded in March 2023, the Indian economy grew by 7.2 per cent.
According to the report, Asia-Pacific continues to be a “multi-speed region” with regard to GDP and marginally increased its projection for 2023 to 3.9 per cent due to internal resilience.
Both developed and emerging Asian economies experienced an increase in GDP growth year over year in the second quarter. India was in the lead once more, with GDP increasing by 4.2 per cent from one quarter to the next and 7.8 per cent from a year earlier, it further added.