New Delhi, Sep 23 (PTI): Global agencies S&P, Fitch, Asian Development Bank (ADB) and OECD on Wednesday raised India’s FY27 GDP growth projection to around 7 per cent, boosted by robust June quarter economic activity and resilient domestic demand despite conflict in West Asia. Additionally, S&P and Fitch said inflationary pressures will push the Reserve Bank to hike policy interest rates by at least 25 basis points in the current year. Paris-based Organisation for Economic Cooperation and Development (OECD) upped GDP growth forecast by 80 basis points to 7.1 per cent — the highest growth rate so far projected by any international agency for FY’27.
ADB, while raising the growth forecast to 7 per cent, from 6.6 per cent estimated in July, said the Indian economy has benefited from lower-than-expected supply disruptions and sustained capital inflows, which helped cushion the impact of the conflict in the Middle East.
S&P upgraded India’s GDP growth forecast for the current fiscal year to 7 per cent, from 6.6 per cent previously, while Fitch Ratings said growth in India remains “very strong” with “very robust” dynamism despite the oil price shock, hiking GDP growth estimates to 6.9 per cent, from 6.4 per cent earlier.
The growth upgrades by these four global agencies came close on the heels of US-based Moody’s Ratings last week raising GDP growth forecast for the fiscal year to 7 per cent — the fastest among all G20 economies.
