Mumbai5 minutes ago
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India will remain one of the fastest growing economies in Asia in this decade.
America’s tariff will not have much effect on India. This claim was made by Fitch Solutions company BMI in its latest report. The report said that the improvement in Goods and Services Tax (GST) will reduce tax rates, which will increase consumption. This will reduce US tariff pressure.
The report said that India’s GDP growth may decrease by 0.2% in FY 2025-26 and 2026-27 from the US tariff. So BMI has revised its estimate. It estimates 5.8% in FY 2025-26 and 5.4% in 2026-27.
The report also states that India will remain one of the fastest growing economies in Asia in this decade (2019-2029). During this time the GDP growth rate will be a little up to 6%.
The GST improvement and recent reduction in income tax can increase by ₹ 5.31 lakh crore in consumption, which is about 1.6% of GDP.
S&P had increased India’s rating
Earlier, Global Rating Agency S&P Global had increased India’s long-term credit rating from BBB-to BBB. At the same time, the short-term rating was also increased from A-3 to A-2. At the same time, Outlook has been kept stable with Indian economy.
S&P says that India’s economy is getting stronger. The government is constantly trying to control its expenses, which is called fiscal consolidation. Apart from this, India’s economic growth is also happening rapidly, which is a major reason for this upgrade.
- BBB- What is: The lowest “investment grade” rating. This means that the ability to repay the debt is fine, but there may be a slight risk in economic problems. Investment safe, limited trust.
- What is bbb: These BBB-one step above. The ability to repay the debt good, reduce the risk, and the trust of investors is slightly higher.
