S&P Global Ratings revised down its estimate for India's economic growth in the next two financial years as high interest rate and lower fiscal impulse temper urban demand.
S&P Global Ratings maintained India's growth forecast at 6.8 per cent while noting that the Reserve Bank of India (RBI) may cut interest rates in October.
India's exports to Bangladesh dipped to $11 billion in 2023-24 from $12.21 billion in 2022-23. Imports too declined to $1.84 billion in the last fiscal, from $2 billion in 2022-23.
S&P Global Ratings retained India's GDP growth forecast for the Financial Year 2023-24 at 6.8 per cent and said high interest rates and lower fiscal spur would temper demand.
The positive outlook reflects expectations of sustained policy stability, deepening economic reforms, and high infrastructure investment, which are anticipated to support long-term growth prospects.
According to S&P, 3-8 per cent of loans could get restructured.
Last week, the rating agency had stated, “India's economy is in deep trouble.
The agency noted that many discoms in India have weak financial health owing to excess debt, loss-making operations, and high transmission and distribution (T&D) losses of more than 15 per cent.
1. RIL and Facebook have joined forces to accelerate the launch of its JioMart e-commerce platform on Facebook's WhatsApp application. 2. It expected RIL to continue to follow a prudent financial policy in the current volatile market.
Standard and Poor's (S&P) joins a chorus of international agencies that have made a similar cut in growth estimates in recent days.
