S&P Lifts India's FY24 Growth Outlook

(RTTNews) - S&P Global Ratings upgraded India's growth projection for the current financial year on domestic momentum but lowered its outlook for the next financial year citing subdued global growth and base effect.

The rating agency forecast the economy to grow 6.4 percent in the year ending March 2024, up from the previous projection of 6.0 percent. Nonetheless, this was slightly below Reserve Bank of India's forecast of 6.5 percent.

At the same time, the growth outlook for the fiscal year ending 2025 was lowered to 6.4 percent from 6.9 percent. The downgrade reflects weak global growth, high base of comparison as well as the lagged impact of interest rate hikes, S&P said.

GDP data for the July to September quarter is due on November 30. The economy is expected to log 6.8 percent growth in the September quarter, weaker than the 7.8 percent expansion posted in the preceding period.