<p>New Delhi: S&P Global Ratings on Wednesday said India's economy has a track record of strong growth and retained its 6 per cent growth forecast for current fiscal year.</p><p>In Asia-Pacific Credit Outlook 2024 titled 'Slowing Dragons, Roaring Tigers', S&P said gradual capital deepening, favourable demographics, and improving productivity are essential growth factors.</p><p>"India's economy has a track record of strong growth. We expect this momentum to continue and forecast growth of 6 per cent for FY 2024, then 6.9 per cent for FY 2025 and FY 2026," S&P said.</p><p>It said India’s economic growth shines brightly. However, its yields remain higher, as they have been historically, which puts additional pressure on the cost of funding India’s large debt stock.</p><p>While growth supports market confidence and revenue generation, rates dynamics will be an additional determinant of India’s debt trajectory over the next few years, the US-based rating agency said.</p><p>Gradual capital deepening, favourable demographics, and improving productivity are essential growth factors.</p><p>"Challenges for unlocking the next phase of growth include labour force participation, climate resilience, and further improvements in business environment," S&P said.</p><p>It said the Indian economy is reliant on strong growth performance in services industries.</p><p>The influence of services in the economy has grown over time, while agriculture and other primary industries have reduced economic shares.</p><p>"We expect share of services in the economy to rise further as comparative advantages are still in that space," it added. </p>
<p>New Delhi: S&P Global Ratings on Wednesday said India's economy has a track record of strong growth and retained its 6 per cent growth forecast for current fiscal year.</p><p>In Asia-Pacific Credit Outlook 2024 titled 'Slowing Dragons, Roaring Tigers', S&P said gradual capital deepening, favourable demographics, and improving productivity are essential growth factors.</p><p>"India's economy has a track record of strong growth. We expect this momentum to continue and forecast growth of 6 per cent for FY 2024, then 6.9 per cent for FY 2025 and FY 2026," S&P said.</p><p>It said India’s economic growth shines brightly. However, its yields remain higher, as they have been historically, which puts additional pressure on the cost of funding India’s large debt stock.</p><p>While growth supports market confidence and revenue generation, rates dynamics will be an additional determinant of India’s debt trajectory over the next few years, the US-based rating agency said.</p><p>Gradual capital deepening, favourable demographics, and improving productivity are essential growth factors.</p><p>"Challenges for unlocking the next phase of growth include labour force participation, climate resilience, and further improvements in business environment," S&P said.</p><p>It said the Indian economy is reliant on strong growth performance in services industries.</p><p>The influence of services in the economy has grown over time, while agriculture and other primary industries have reduced economic shares.</p><p>"We expect share of services in the economy to rise further as comparative advantages are still in that space," it added. </p>