India to Remain Fastest Growing Economy in Asia Pacific in FY24, Says S&P - Current Affairs

 S&P Retains India's Growth Projection at 6% for FY24; Fastest Growing Economy in Asia Pacific

S&P Global Ratings has retained its growth projection for India at 6% for the financial year 2023-24 (FY24). This makes India the fastest growing economy in Asia Pacific, according to S&P.

The ratings agency cited a number of factors for its positive outlook on India's economy, including:

• The continued strength of domestic demand, driven by strong consumer spending and investment.
• The gradual recovery of the services sector, which was hit hard by the COVID-19 pandemic.
• The government's focus on infrastructure development, which is expected to boost growth in the coming years.

However, S&P also noted some risks to India's growth outlook, including:

• The ongoing war in Ukraine, which could disrupt global trade and lead to higher inflation.
• The tightening of monetary policy by central banks around the world, which could weigh on global growth.
• The threat of a third wave of COVID-19, which could disrupt economic activity.

Despite these risks, S&P believes that India's growth outlook remains positive. The ratings agency expects India's economy to grow at an average rate of 6.5% over the next five years.

Conclusion

The retention of India's growth projection at 6% for FY24 is a positive sign for the country's economy. It shows that international investors are confident in India's long-term growth prospects. However, the government will need to address the risks to growth, such as the war in Ukraine and the tightening of monetary policy, in order to maintain this positive outlook.