GDP Growth: S&P cuts India's growth forecast to 7.3%, cites inflation and the Russia-Ukraine war as the reason

Posted on 18th May 2022 02:31 pm by rohit kumar

India's economic growth rate will be 7.3 percent in the current financial year. S&P Global Ratings released its report on Wednesday, revising India's growth forecast for FY23 to 7.3 percent from 7.8 percent.

 

Policy rates need to be hiked further

 

In its Global Macro Update to Growth Forecast, the S&P said that prolonged inflation in the country is a major concern, requiring central banks to hike rates further. According to the report, while the growth forecast for the current financial year has been reduced to 7.3 percent, the growth rate for the next financial year has been projected to be 6.5 percent.

 

 

This estimate of inflation

 

The report released by S&P Global said that the revision of our forecast is attributed not only to rising inflation in the country but also to the escalation of the ongoing war between Russia and Ukraine. This could further increase the risk to the economy. S&P has projected CPI or retail inflation to be 6.9 percent in the current fiscal. The report also estimated that the Indian economy registered a GDP growth of 8.9 percent in the last financial year (2021-22). Significantly, after the Russo-Ukraine war and rising commodity prices, various global agencies have recently cut India's growth forecast.

 

World Bank to RBI cut

 

While the World Bank in April slashed India's GDP forecast for the fiscal year 2022-23 to 8 percent from 8.7 percent, the IMF slashed the projections to 8.2 percent from 9 percent. Apart from this, the Asian Development Bank (ADB) has projected India's growth rate to be 7.5 percent, while the RBI reduced its forecast to 7.2 percent from 7.8 percent.

 

Also Read: Russia-Ukraine War: RBI may increase the repo rate by 0.75 percent by August, Ukraine crisis also due to an increase in inflation

Other news

Ricky Ponting wants to see these two out of Dinesh Karthik, Sanju Samson, Rishabh Pant, and Ishaan Kishan playing in the T20 World Cup

The ICC T20 World Cup is to be played in Australia in October-November this year. All the teams h

Kolkata Rains: Rains wreak havoc before Durga Puja, killing 7 people, disrupting normal life

Torrential rains lashed Kolkata and its surrounding areas overnight on Tuesday, disrupting normal

TDS On Cryptocurrency: Cryptocurrency investors will have to pay one percent TDS from July 1, 2022, know the rules

Investors of cryptocurrencies will have to pay TDS of one percent on every transaction whether it

Foxconn: Congress taunts BJP on Foxconn's decision, said- should not trust the headlines created

The Congress targeted the BJP after Foxconn decided to exit. Congress said that whether it is the

Akash Ambani became the chairman of Reliance Jio, Mukesh Ambani did the design from the director's post

There has been a major reshuffle at the management level in Mukesh Ambani's company Reliance Jio

Amidst the Drishyam 3 controversy, Akshaye Khanna has started shooting for his upcoming film; he is set to create a stir after his performance in Dhurandhar.

Currently, if there's one Bollywood actor who's making the most headlines, it's Akshaye Khanna. H

Saint Premanand's statement, which has created a ruckus, Shri Krishna Janmabhoomi Sangharsh Nyas has blown the trumpet of agitation

After the indecent comment made by Bhagwatcharya Aniruddhacharya on women, Shri Krishna Janmabhoo

Delhi engulfed in dense fog: AQI crosses 400, demand for closure of schools

The air of Delhi-NCR is becoming toxic. The blanket of smog, which has spread for the last three

RBI GDP Growth: RBI increased India's economic growth forecast, GDP can be affected by this

The announcement of the new monetary policy by the Reserve Bank of India (RBI), has increased the

Jaishankar: Covid, Conflict, and Climate are three big challenges, Jaishankar said - their impact on global food security

External Affairs Minister S Jaishankar has presented Covid, Conflict, and Climate (Corona, Confli