India's GDP crosses $4 trillion for the first time, ranks fourth worldwide
economy goal. There is a “wide consensus" supported by economic forecasts that real gross domestic product (GDP) growth in the second quarter will turn out to be better than the Reserve Bank of India’s (RBI) projection of 6.5 percent, an article in the central bank’s November bulletin said on November 16. India’s economy expanded 7.8 percent in the first three months of the financial year and RBI governor Shaktikanta Das recently expressed confidence in the domestic economy.
“Looking at the momentum of economic activity—a few early data points have come in—I expect Q2 GDP numbers which will come at the end of November in all probability will surprise on the upside," Das said on October 31. The optimism that real GDP growth will be higher than 6.5%, the article said, appears to be supported by corporate results for the September quarter. India's economic growth prospects should remain strong over the medium term, with GDP expanding 6-7.1 percent annually in fiscal years 2024-2026, S&P Global Ratings said on November 16.
In a report titled 'Global Banks Country-By-Country Outlook 2024', S&P said the banking sector's weak loans will decline to 3-3.5 percent 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. The report said that 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
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