NEW DELHI: Ratings agency S&P has retained India’s GDP growth forecast at 6.8% for 2024-25 and expects RBI to begin cutting interest rates in Oct. It expects India’s economy to grow by 6.9% in 2025 and 7% in 2026 and 2027.
“In India, solid growth allows RBI to focus on bringing inflation in line with its target,” S&P said.
“RBI considers food inflation a hurdle for rate cuts.It reckons unless there is a lasting decline in rate at which food prices are increasing, it will be tough to maintain headline inflation at 4%.”