Effect of inflation on the economy of the country! S&P used scissors on growth forecast

Rising inflation and Russia-Ukraine war are likely to have an impact on India’s GDP. GDP growth estimates of all rating agencies are also indicating this. In this series, the global rating agency S&P has reduced India’s growth forecast from 7.8 percent to 7.3 percent.

In fact, in December last year, this rating agency had estimated India’s GDP growth at 7.8 per cent for 2022-23. Now it has been reduced to 7.3 per cent in the current financial year (2022-23). At the same time, 6.5 percent growth has been estimated for the next financial year.

S&P said retail inflation is likely to remain at 6.9 per cent in the current fiscal. According to S&P, the war between Russia and Ukraine is expected to prolong, which has increased the risk.

Whose estimate: In April, the World Bank cut India’s GDP forecast from 8.7 percent to 8 percent, while the International Monetary Fund cut it from 9 percent to 8.2 percent and the Asian Development Bank forecast a growth of 7.5 percent. At the same time, the Reserve Bank of India (RBI) last month reduced the growth forecast to 7.2 per cent from 7.8 per cent.