S&P cuts India's growth forecast for FY23 to 7.3%, sees inflation at 6.3%

The rating agency assumes that the Russia-Ukraine conflict is more likely to drag on and escalate than end earlier, pushing the risks to the downside


(Photo: Reuters)

Asit Ranjan Mishra New Delhi
S&P Global Ratings on Wednesday slashed India’s growth forecast to 7.3 per cent from 7.8 per cent for FY23 on rising inflationary pressure and longer-than-expected Russia-Ukraine war.

The rating agency increased its inflation forecast for India by 90 basis points (bps) to 6.3 per cent for the current fiscal year.

“Since our most recent growth forecast at the end of March, a number of macro variables have deteriorated. These include weaker first-quarter numbers in many countries, higher energy and commodity prices, a longer-than-expected Russia-Ukraine conflict, faster monetary policy normalisation and slower Chinese growth. The balance of risks to our baseline has deteriorated since our last forecast and remains firmly on the downside,” S&P said in its latest Global Macro Update.

First Published: May 19 2022 | 01:04 AM IST

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