Trending:

India a shining star of global economy: S&P Chief Economist

S&P Global Ratings Chief Economist Paul Gruenwald said in a world where almost everyone is slowing down, India will be posting 7+% growth this fiscal year and 6.5% for the next year

ET Now Digital

Updated Sep 24, 2022, 23:27 IST

India shining star of global economy: S&P Chief Economist

Photo : iStock

S&P Global Ratings Chief Economist Paul Gruenwald described India as a “shining star” of the global economy. He said that compared to a slowing global economy, the Indian economy is doing pretty good owing to reforms, the government’s investment push and a large domestic market.

“India is the shining star of the global economy right now. It’s been a little bit under the radar. In a world where almost everyone is slowing down India will be posting 7+% growth this fiscal year and 6.5% for the next year,” said Gruenwald in an interview with TOI.

He added India appears less vulnerable than many other countries given the size of its domestic market. He added that the Indian economy looks to be in a good shape for the next couple of years.

He further said that the Indian economy will grow between 7-7.5% this fiscal and will retain its position as the world’s fastest-growing major economy. However, it faces challenges from a slowing global economy, sticky inflation and rising interest rates.

The S&P economist noted that the balance sheets of large companies appear to be in good shape and government financing has become more efficient in terms of revenue, with the rollout of GST and with better targeting on the revenue side.

The only missing link is private capex, which he added, if materialises then the economy would be a sustainable story.

He said India and other emerging markets need to be wary of US Federal Reserve decisions.

“I think the point is that India and other emerging markets have to be cognisant of what the US Fed is doing and they cannot ignore the Fed. The US ha s this wonderful position where they can make monetary policy and not worry too much about the rest of the world but all of the emerging markets, including India, have to take into account what the Fed’s doing,” he added

Latest News