S&P has kept India's GDP growth forecast at 6.8% for 2024-25 and predicts the Reserve Bank of India (RBI) will start cutting interest rates in October.
The ratings agency expects India’s growth to rise to 6.9% in 2025 and reach 7% by 2026-27. While strong growth gives RBI room to focus on controlling inflation, food inflation remains a challenge. S&P noted that unless food prices slow down significantly, it will be hard for the RBI to keep overall inflation near its target of 4%.