GDP Data: After Moody's and Fitch, S&P Global is also bullish on Indian economy

highlights

There may be a cut in interest rates in India in the 2024 calendar year.

The pace of inflation in India is now slowing down.

The Reserve Bank has estimated GDP to grow at the rate of 7 percent.

India GDP Data : After Moody's and Fitch, S&P Global Ratings is also bullish on the Indian economy. S&P has increased India's GDP estimate by 40 basis points to 6.8 percent for the financial year 2024-25. This assessment of S&P Global is less than Fitch's estimate of 7 percent but equal to Moody's estimate of 6.8 percent. This is less than the estimate of 7 percent by the government and the Central Bank of India. The agency has estimated India's GDP to be 7.6 percent in the current financial year 2023-24.

While S&P has increased the growth forecast of the Indian economy, China's GDP growth is likely to decline from 5.2 percent in FY 2025 to 4.6 percent in FY 2025. S&P says that its forecast is due to factors like continued weakness in property and modest macro policy support. If consumption remains weak, deflation remains a risk and the government responds by encouraging more manufacturing investment.

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Impact on demand due to inflation
Louis Kuijs, Chief Economist of S&P Global Ratings, said that among the emerging economies of Asia, 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 hit household spending, which could slow economic growth in the second half of 2023-24. happened.

Loan expected to be cheaper this year
S&P Global Ratings said that there may be a cut in interest rates in India in the 2024 calendar year. This reduction may be seen up to 75 basis points. According to the agency, the pace of inflation in India is slowing down, fiscal deficit is reducing and the reduction in interest rates by the US Federal Reserve will become the basis for the RBI to reduce interest rates in India too.

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Tags: Business news in hindi, Economy, GDP, GDP growth