Global rating agency S&P on Monday maintained its economic growth forecast for India at 7.3 per cent for FY23 and 6.5 per cent for FY24, with “risks tilted to the downside”. It also predicted retail inflation to stay above the central bank’s medium-term target of 2-6 per cent until the end of 2022.
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In its latest Economic Outlook for Asia Pacific, S&P said elevated global interest rates will continue to exert pressure on central banks across countries in the form of capital outflows and currency depreciation.
Louis Kuijs, chief economist (Asia Pacific) at S&P Global Ratings, said the impact of a pronounced slowdown in China was blunted by a strong rebound in India as consumption, especially of services, continued to gather pace and investment grew rapidly. S&P economist Vishrut Rana said the rupee may continue to witness volatility, but the country has adequate buffer to absorb the shock of foreign fund outflows. FE
