India GDP Data S&P Global raises India's FY25 GDP growth forecast to 6.8% by 40 basis Points

India GDP Data: After Moody's and Fitch, S&P Global Ratings has decided to increase India's GDP estimates for the new financial year 2024-25 starting from April 1. The rating agency has increased India's GDP estimate by 40 basis points to 6.8 percent in the next financial year. Although this estimate of S&P Global is less than Fitch's estimate of 7 percent, it is equal to Moody's estimate of 6.8 percent.

GDP will be 6.8% in 2024-25

S&P Global said in its report that India's GDP is estimated to be 7.6 percent in the current financial year 2023-24. However, India's economic growth is estimated to be 5 percent in the financial years 2025-26 and 2026-27. S&P Global has increased India's GDP forecast for 2024-25 to 6.8 percent but this is less than the 7 percent estimate of the government and the central bank Reserve Bank of India.

Impact of inflation on demand

Louis Kuijs, Chief Economist of S&P Global Ratings, said that among the emerging economies of Asia, we believe that India, Indonesia, Philippines and Vietnam will see rapid economic growth. According to S&P, in economies dependent on domestic demand, including India, Japan and Australia, high interest rates and inflation have affected household spending, which slowed economic growth in the second half of 2023-24. Is.

Loan will be cheaper in 2024

S&P Global Ratings said that India may see interest rates cut by up to 75 percentage points in the 2024 calendar year. According to the report, the pace of inflation is slowing down in India, the fiscal deficit is reducing and the reduction in interest rates by the US Federal Reserve will become the basis for the RBI to reduce the interest rates in India too.

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