S&P Revise India’s FY23 GDP growth forecast by 30 bps to 7%

Previously, the agency sustained its India’s economic growth projection at 7.3 per cent for the current fiscal. According to S&P, in respect to the economic outlook for Asia Pacific, the external environment has affected economies in the region

S&P Global Ratings altered FY23 GDP growth forecast of India, downwards by 30 bps to 7 per cent. The forecast has been revised by 50 bps to 6 per cent for FY24, on 28 November.

Previously, the agency sustained its India’s economic growth projection at 7.3 per cent for the current fiscal. It said that inflation may remain beyond the upper tolerance limit of 6 per cent till 2022 ending.

According to S&P, in respect to the economic outlook for Asia Pacific, the external environment has affected economies in the region and higher global interest rates will continue to put pressure on central banks in the form of capital outflows and currency depreciation.

The Chief Economist, S&P Global Ratings Asia-Pacific, Louis Kuijs had said in September that due to a strong rebound in India as consumption, a pronounced slowdown in China was offset, especially of services and it continued to recover and investment grew rapidly.