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S&P Global Ratings Senior Economist (Asia Pacific) Vishrut Rana has said Indian economy is expected to clock an average growth rate of 6.7 per cent till 2026-27 fiscal driven by domestic consumption. Further, he stated the economic growth in the current fiscal (FY24) is expected to come in around 6 per cent, lower than 7.2 per cent clocked in 2022-23.

He stated ‘We are seeing some headwinds from the trade side which is affecting activity and that is one of the factors that is affecting growth this year’.  He said the factors that are driving the slowdown from 7.2 per cent growth last fiscal are weaker external environment, moderation in pent-up demand, and softening private consumption activity. He added with tighter monetary policy there is expected to be some impact on consumer demand. 

However, he said there is a 'strong tailwind' coming from the investment side and the investment outlook is looking significantly stronger. Besides. He said ‘Inflation is moderating... We do not expect RBI to be in a hurry to cut interest rates.’ Moreover, he said the RBI is likely to wait till early 2024 to cut rates till inflation expectations are anchored fully.