India’s GDP Growth Stands Strong at 6.8% for FY25 as China’s Forecast Dips – S&P Global Ratings | MorungExpress
New Delhi, September 24 (IANS): S&P Global Ratings has affirmed India’s GDP growth forecast at 6.8% for FY 2024-25 and 6.9% for FY 2025-26, while cutting China’s growth projections to 4.6% for 2024 and 4.3% for 2025. In its quarterly economic outlook for the Asia-Pacific, S&P noted that India’s GDP growth decelerated in the June quarter due to high interest rates impacting urban demand. The steady growth trajectory enables the Reserve Bank of India (RBI) to focus on aligning inflation with its target.
The report highlighted that food inflation poses a challenge for RBI rate cuts. S&P anticipates that the RBI will commence rate cuts in October, projecting two rate cuts within the fiscal year ending March 2025. Despite India’s robust growth, the central government remains committed to fiscal consolidation, aiming to reduce the fiscal deficit below 4.5% of GDP by FY 2025-26. The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, allocates Rs 11.11 lakh crore for capital expenditure, reflecting the government’s focus on infrastructure development.
Conversely, China’s economic forecast has been downgraded due to a sluggish property sector, weak domestic demand, and policymakers’ reluctance to ease fiscal policies. S&P’s revision underscores the ongoing economic challenges faced by China.
Overall, the economic projections affirm India’s steady growth momentum amidst inflationary challenges, while China’s revisions highlight significant hurdles impacting its growth outlook.
Original Story https://www.morungexpress.com/sp-global-ratings-retains-indias-gdp-growth-at-68-pc-for-fy25-cuts-chinas-forecast
Category : Business , India
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