Fitch Ratings has lowered India's GDP growth projection for the current fiscal year to 6.4 per cent from the earlier estimate of 6.7 per cent. It said the US-Iran war will slow the economy in the September and December quarters.
India’s central bank has kept borrowing costs steady while signalling caution on global risks, even as domestic demand and services activity continue to support economic momentum.
The Budget comes at a time when India remains one of the fastest-growing major economies, even as global growth moderates due to geopolitical uncertainties, tight financial conditions and slowing demand in key markets.
While giving a detailed presentation on the Economic Survey, CEA said the Real GDP growth has improved steadily, rising from an average of 6.4 per cent during FY12-FY20 to 6.5 per cent in FY25, and is projected to accelerate further to 7.4 per cent in FY26.
SBI Research projects nominal GDP growth of around 10.5–11 per cent for FY27, factoring in the potential spillover of higher global commodity prices into wholesale inflation.
This praise for India's cash transfer scheme comes as the country continues to maintain its position as the fastest-growing major economy in the world.
The monthly economic review released by the Finance Ministry noted that as external pressures will diminish, inflationary pressures are expected to wear down.
On Thursday, RBI retained its key short-term lending rates during the sixth and final monetary policy review of FY22.
The revised figure was slightly better than an averagely predicted annual growth of 1.8 percent by private-sector economists surveyed by local media.
As per Ind-Ra, the Indian economy was witnessing a consumption slowdown even before the Covid-19 pandemic.
