S&P Global Ratings has increased India’s FY25 GDP forecast to 6.8%, up by 0.4%. Despite the upward revision, concerns over reduced fiscal deficit potentially weakening economic growth persist. The Reserve Bank of India projected a 7% GDP growth for FY25. S&P Global anticipates a moderation in growth compared to FY2024’s 7.6%, citing possible impacts of elevated interest rates and regulatory measures to control unsecured lending. The agency expects loan growth to decline to 14% in FY25 from 16% in FY24 due to these actions. Stricter norms may disrupt affected entities and foster caution among fintechs and regulated entities, as per the Economic Outlook Asia-Pacific report.
S&P Global Ratings Raises India’s FY25 GDP Forecast to 6.8%
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