India to maintain position as fastest-growing economy for next three years: S&P Global Ratings
India forecasted to retain position as fastest-growing major economy, predicts S&P Global Ratings with a 6.7% growth rate.
India is projected to maintain its position as the Asia Pacific region’s fastest-growing economy, according to S&P Global Ratings. The agency has affirmed its earlier forecast of 6 per cent growth for India, a figure it had initially predicted in March. S&P cited the country’s domestic resilience as one of the factors contributing to its unchanged growth forecast.
In its quarterly economic update for Asia-Pacific, S&P stated that India, along with Vietnam and the Philippines, is expected to exhibit the highest growth rate of approximately 6 per cent. The report also highlighted a relatively solid medium-term growth outlook for the country.
Louis Kuijs, the Asia-Pacific chief economist at S&P Global Ratings, stated that the Asian emerging market economies are expected to continue being among the fastest-growing economies globally until 2026.
The report also forecasts a decline in retail inflation to 5 per cent in the current fiscal year from the previous figure of 6.7 per cent. S&P Global Ratings expects the Reserve Bank of India (RBI) to implement interest rate cuts, but not until 2024.
According to Louis Kuijs, assuming normal monsoons, there is an expectation for headline consumer inflation to decrease to 5 per cent in the fiscal year 2024 from the current rate of 6.7 per cent. Factors such as lower crude prices and a moderation in demand are likely to contribute to the decline in fuel and core inflation, respectively. Kuijs stated that the cycles of inflation and rate hikes have already reached their peak.
Reserve Bank of India Governor Shaktikanta Das, in a recent interview, acknowledged that inflation has decreased to below 5 per cent as a result of measures implemented by the central bank and supply-side initiatives taken by the government. However, he highlighted the presence of certain challenges that could impact inflation, including geopolitical tensions, El Nino predictions, and weather-related events.
Reserve Bank of India Governor Shaktikanta Das, in a recent interview, acknowledged that inflation has decreased to below 5 per cent as a result of measures implemented by the central bank and supply-side initiatives taken by the government. However, he highlighted the presence of certain challenges that could impact inflation, including geopolitical tensions, El Nino predictions, and weather-related events.
In line with this, the Monetary Policy Committee (MPC) made announcements earlier this month, revising the inflation forecast for the fiscal year 2024 from 5.2 per cent to 5.1 per cent. These adjustments reflect the ongoing efforts to monitor and address the various factors that could influence inflation in the future.
