India's GDP growth rate in the year 2021 was 8.5 percent.

New Delhi:

Global agency S&P Global Ratings on Monday reduced India's economic growth forecast to seven percent.

However, the agency also said that due to domestic demand, the impact of global slowdown on the economy will be less.

Earlier in September, the agency had projected India's GDP growth rate to be 7.3 percent in 2022-23 and 6.5 percent in 2023-24.

The global slowdown will have less impact on domestic demand-driven economies like India, said Louis Kuijs, chief economist for Asia Pacific at S&P Global Ratings.

India's economic growth rate is estimated to be seven percent in the financial year 2022-2023 and six percent in the next financial year.

At the same time, India's GDP growth rate in the year 2021 was 8.5 percent.

S&P said in this quarterly economic report for the Asia-Pacific region that the post-Covid demand recovery in some countries is expected to accelerate further.

This will support economic growth in India next year.

The rating agency said about inflation that it will average 6.8 percent in the current financial year and the Reserve Bank of India's standard interest rate is likely to increase to 6.25 percent in March 2023.

RBI has already increased the policy rate by 1.9 percent to bring inflation under control.

With this, the key policy rate repo has reached a three-year high of 5.9 percent.

The country's wholesale and retail inflation decreased in the month of October.

It has remained above the tolerable level almost all year due to supply constraints due to Russia-Ukraine war.

Last month, inflation based on the Consumer Price Index stood at a three-month low of 6.7 per cent, while the wholesale inflation came down to a 19-month low of 8.39 per cent. 


Regarding the exchange rate, S&P said that the currency reserves in the emerging market of Asia have decreased.

By the end of March, the rupee is estimated to be 79.50 per dollar, which is currently at 81.77.



(This news has not been edited by NDTV team. It is published directly from syndicate feed.)

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