Explorer

India's GDP To Grow 6-7 Per Cent During 2024-26, Growth Prospects Strong: S&P

S&P said interest rates in India are unlikely to rise materially, and this should limit the risk for the banking industry

S&P Global Ratings on Thursday said India's GDP could expand 6-7.1 per cent annually in fiscal years 2024-2026 as the nation's economic growth prospects remain strong over the medium term. In a report titled 'Global Banks Country-By-Country Outlook 2024', the rating agency said Indian banking sector's weak loans will decline to 3-3.5 per cent of gross advances by March 31, 2025, on the back of structural improvement, including healthy corporate balance sheets, tighter underwriting standards, and improved risk-management practices.

S&P said interest rates in India are unlikely to rise materially, and this should limit the risk for the banking industry. "Unsecured personal loans have grown rapidly and could contribute to incremental NPLs. We believe underwriting standards for retail loans generally remain healthy and overall level of delinquencies remains within acceptable limits for this product category," S&P Primary Credit Analyst Deepali Seth Chhabria said.

According to the report, global uncertainties will have a lesser impact on the Indian economy. Slower global growth and external demand will weigh on economic activity and could fuel further inflation. However, given that India is domestically oriented, the agency expects the economic growth to be less affected, it added.

"Economic growth momentum to continue. India's economic growth prospects should remain strong over the medium term, with GDP expanding 6-7.1 per cent annually in fiscal years 2024-2026," S&P said.

India's real GDP rose 7.8 per cent year-on-year (YoY) in the June quarter, up from 6.1 per cent in the March quarter.

The Reserve Bank of India (RBI) has forecast a 6.5 per cent economic growth for the 2023-24 and 2024-25 fiscal years. It also stated that State Bank of India and the leading private-sector banks have largely addressed their asset-quality challenges.

Many public-sector banks still carry relatively high volumes of weak assets, which will result in higher credit losses and hit profitability; their performance lags that of the industry.

ALSO READ | Centre Sells 2.84 Lakh Tonnes Of Wheat, 5,830 Tonnes Of Rice To Control Retail Prices

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

Bird Strike Or Fog: What Led To Kazakhstan Plane Crash That Killed At Least 30
Bird Strike Or Fog: What Led To Kazakhstan Plane Crash That Killed At Least 30
Renowned Malayalam Writer MT Vasudevan Nair Dies At 91, Kerala Govt Announces 2-Day Mourning
Renowned Malayalam Writer MT Vasudevan Nair Dies At 91, Kerala Govt Announces 2-Day Mourning
Christmas Spirit Grips India As Devotees Throng Churches To Celebrate With Religious Fervour — PICS
Christmas Spirit Grips India As Devotees Throng Churches To Celebrate With Religious Fervour — PICS
ABP News Checks AAP's Claim Of 'Cash-For-Vote Scam' Against BJP, Revelations Will Shock You. VIDEO
ABP News Checks AAP's Claim Of 'Cash-For-Vote Scam' Against BJP, Revelations Will Shock You. VIDEO
Advertisement
ABP Premium

Videos

Anya Polytech IPO: Must Watch Exclusive Interview Before Investing | Paisa LiveWhy Payas Pandit Struggled to Gain Recognition Despite Her Bhojpuri Debut with Pawan Singh?Sambhal News: ASI Team to Inspect Stepwell Today, Exclusive Pictures from the SiteBJP Accuses AAP of Deceiving Public with New Schemes Ahead of Delhi Elections

Photo Gallery

Embed widget