S&P Sees India's Economy Expanding 8% In Next 2 Years

According to media reports, S&P Global Ratings has given thumbs up to India's growth story, terming it as "pretty solid", lauding the efforts of the Modi government to push structural reforms including the GST which are expected to provide a great deal of impetus to the growth potential of Asia's third biggest economy.

S&P Sees India's Economy Expanding 8% In Next 2 Years
S&P Global Ratings sees the Indian economy expanding by 8 per cent in the ongoing financial year which ends on March 31, 2017, and FY 2017-18. Still, the rate of expansion in India's economy will depend upon several factors including measures taken by the centre to clean up the balance sheets of ailing state-run lenders and the choice of the person to head the country's central bank with Raghuram Rajan vacating his post as the RBI governor in early September.

A good monsoon may also bolster demand from the rural areas, while boosting agricultural output and keeping a check on gains in food prices, providing more leeway for the RBI to cut interest rates in the coming months, that may help lift consumption and investment.

India's strong consumption growth, prudent monetary and fiscal policy, its resilience against external headwinds including post Brexit, will continue to ensure that the country remains among the world's most attractive investment destinations.

Read more about: sp, gdp
Story first published: Friday, July 22, 2016, 23:00 [IST]
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