S&P Global Lowers India’s Growth Forecast

Current Context: S&P Global Ratings lowered India’s real GDP growth for the upcoming two fiscal years (FY) by 50 basis points (0.5%).

• In its report titled, “Global Credit Outlook 2023: No Easy Way Out”, S&P Global Ratings cut the growth forecast citing a downturn in global demand.
• According to it, the Indian economy is expected to grow by:

1. 7.0% (earlier 7.5%) in FY23
2. 6.0% (earlier 6.5%) in FY24

• In the report, it mentioned that India’s domestic demand-led economy will be less affected by the global slowdown.
• The rating agency also suggested that getting inflation under control while minimizing damage to output will remain the main macro policy challenge of India.
• S&P Global Ratings is a credit rating agency that was established in 1860 with its headquarters in New York, USA. The current Presidents of the company are Martina Cheung and John L. Berisford.

Question:

Q.1 According to the credit rating agency, S&P Global Ratings, India’s expected GDP growth rate for FY23 is?
a. 7.0%
b. 7.3%
c. 7.5%
d. 7.7%