November 13, 2024

India will be the fastest growing economy for three years, China is nowhere in its competition.


New Delhi: While the fear of recession is increasing in many countries of the world, India’s economy is growing at the speed of a rocket. Global rating agency S&P (S&P) says that the Indian economy is expected to grow at an average of 6.7 per cent in the next three years. During this time no other country will be in competition with India. According to S&P, the emerging economies of Asia will remain the fastest growing economies in the world till 2026. In this, India, Vietnam and Philippines will be at the forefront. India’s economy is expected to grow at an average rate of 6.7 per cent during 2023-26. Similarly, the economy of Vietnam is expected to grow at an average of 6.6 per cent and that of the Philippines at 6.1 per cent. However, the agency has reduced China’s growth forecast from 5.5 per cent to 5.2 per cent.

S&P released its economic outlook on Monday. In this, India’s growth forecast for the current financial year has been retained at 6 per cent, while in the financial year 2025 and 2026, it has been estimated to grow at a pace of 6.9 per cent. In the financial year 2023, India’s economy had grown at a speed of 7.2 percent. The agency says that the performance of the Indian economy in the March quarter was much better than expected.

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when will the installment reduce

S&P says that fuel and core inflation are likely to ease due to lower crude oil prices and lower demand. Inflation is estimated to be five per cent in the financial year 2024 and then it could be around 4.5 per cent for the next two years. The agency said that the inflation and rate hike cycles have passed their peak. RBI may cut interest rates early next year. By the end of this financial year, it can come up to 6.25 percent, which is now 6.5 percent. However, it is not expected to go below five per cent in the medium term.

Indian Economy

China’s growth forecast reduced

The agency has reduced China’s growth forecast. Earlier it was estimated to be 5.5 percent but now it has been reduced to 5.2 percent. However, the agency has increased the growth forecast for the US and the Eurozone. But the growth forecast for Asia-Pacific has been cut by 0.1 percent. He says that despite the crisis in the banking sector, the services sector labor market in the US and Europe remained in a better condition for the second consecutive quarter. But the agency also cautioned that higher interest rates could put pressure on Asia-Pacific markets and currencies.



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