In its India Outlook for 2025, the global rating agency retained India's growth forecast for this fiscal (FY25) at 6.8 per cent, followed by 6.9 per cent for the next.
At 5.4 per cent, the gross domestic product (GDP) growth print for the second quarter (Q2) in FY25 was weaker than expected, S&P Global Ratings noted.
The fiscal impulse was slower, and pockets of weakness like the urban middle class held back manufacturing growth, which puts some downside risk to the company’s forecast of 6.8 per cent growth for FY25, it said.
Challenges to the economy include post-pandemic weakness in the public sector and household balance sheets, a highly competitive global manufacturing environment and weak agriculture sector growth, a news agency reported citing the company.
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