India’s economic growth is expected to decrease to 7 percent

S&P Global Ratings Agency said that the average inflation rate in the financial year 2022-23 could remain at 6.8 percent.

International rating agency S& P Global Ratings on Monday (28 November) cut India’s economic growth forecast to 7 per cent for the current fiscal , though the agency said domestic demand The economy will be less affected by the global recession. S&P Global Ratings in September projected a growth of 7.3 per cent for the Indian economy in 2022-23 and 6.5 per cent for the next financial year (2023-24).

Global Slowdown will have less impact on India

Louis Kuijs, chief economist for Asia-Pacific at S&P Global Ratings, said, “The global slowdown will have less impact on domestic demand economies like India . India will grow at a growth rate of 7 per cent in the financial year 2022-2023 and 6 per cent in the next financial year.

In 2021, the Indian economy grew with a growth of 8.5 percent. In its quarterly economic report for Asia-Pacific, S&P Global Ratings said domestic demand is yet to recover due to COVID in some countries and this should support growth in India next year.

Inflation can remain at 6.8 percent

The agency said that the average inflation rate in the financial year 2022-23 could remain at 6.8 percent. At the same time, to control inflation by March 2023, RBI can increase the interest rate to 6.25 percent, which is currently at the rate of 5.9 percent.

RBI has already increased the interest rate by 1.9 percent to 3-year high of 5.9 percent. India’s wholesale and retail inflation was high throughout the year mainly due to supply chain disruptions following the outbreak of the Russia-Ukraine war in February, but has declined since October.

Other institutions also reduced India’s growth rate

Explain that the World Bank has also reduced its growth forecast for India by 100 basis points to 6.5 percent. At the same time, IMF has also reduced it from 7.4 percent to 6.8 percent. The Asian Development Bank has also reduced India’s growth from 7.5 percent to 7 percent. RBI expects that India’s economic growth rate will be 7 percent in the current financial year.

Let us tell you that there has been a decrease in the Consumer Price Index in the country. In October last month, the retail inflation rate has come down to 6.77 percent. While it was 7.41 percent in September, it was 7 percent in the month of August. That is, the retail inflation rate is at the lowest level in the last three months.

Leave a Reply

Your email address will not be published.