S&P cuts India’s FY23 economic growth forecast to 7% from earlier 7.3%

The Indian economy grew by 8.5 per cent in 2021. In its quarterly economic update for Asia-Pacific, S&P said that in some countries, the domestic demand recovery from the pandemic has further to go and this should support growth next year in India.

Reducing India’s economic growth forecast for this fiscal to 7 per cent and for the next fiscal to 6 per cent, S&P Global Ratings recently said the domestic demand-led economy will be less affected by the global slowdown. Its September projection said the economy would grow by 7.3 per cent in fiscal 2022-23 and 6.5 per cent in fiscal 2023-24.

The ratings agency projected inflation to average 6.8 per cent this fiscal and the Reserve Bank of India’s benchmark interest rate to rise to 6.25 per cent by March 2023.

In the Asia-Pacific, while China’s growth is likely to remain subdued in the coming months, it should pick up in 2023 as the government eases its COVID stance and the property market stabilizes, S&P said.

Lower global growth and higher interest rates should slow other Asia-Pacific economies next year. But S&P generally expects gross domestic product (GDP) growth to stay healthy.

Fibre2Fashion News Desk (DS)