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Amid rising inflation and the longer-than-expected Russia-Ukraine conflict, credit rating agency, S&P Global Ratings in its ‘Global Macro Update to Growth Forecasts’ report has cut India's growth projection for the current fiscal to 7.3 percent from 7.8 percent earlier pegged in December last year.

According to the report released by the rating agency, inflation remaining higher for a long is a worry, which requires central banks to raise rates more than what is currently priced in, risking a harder landing, including a larger hit to output and employment.

Credit rating agency further noted that the growth has been pegged at 6.5 percent for the next fiscal. It said Indian economy is estimated to have clocked a GDP growth of 8.9 percent in the last fiscal (2021-22). S&P also pegged CPI or retail inflation in the current fiscal at 6.9 percent.