India’s economy remains on a positive trajectory despite ongoing fluctuations. Global ratings agency S&P has upheld its forecast for India’s economic growth at 6.8% for the current fiscal year 2024-25. The agency is also hopeful that the Reserve Bank of India (RBI) will begin lowering interest rates in its upcoming monetary policy review scheduled for October.
Growth Projections for 2025-26 Remain Steady at 6.9%
In its latest Asia-Pacific economic outlook report, S&P Global Ratings maintained its growth forecast for India’s Gross Domestic Product (GDP) at 6.8% for 2024-25. It also kept its forecast of 6.9% for the next fiscal year, 2025-26. The agency noted that India’s strong economic performance will enable the RBI to continue its efforts in managing inflation in accordance with its targets.
Rate Cuts Expected Soon
S&P has suggested that the RBI might begin reducing interest rates during its October Monetary Policy Committee (MPC) review. Just a week ago, S&P reiterated that India is on course to become the world’s third-largest economy by fiscal year 2030-31. S&P is one of the top three credit rating agencies globally, alongside Moody’s and Fitch Ratings.
The RBI had earlier projected India’s growth rate at 7.2% for the current fiscal year
