Driven by infrastructure development and increased consumption, the country’s GDP is projected to grow between 6.5 to 7 per cent annually in the next three fiscals up to 2027. S&P Global Ratings has said this in its latest global bank outlook report. The new report by the agency added that structural improvements and good economic prospects will support the resilience of India’s financial institutions. It added that higher demand coupled with stronger bank capitalisation should boost bank loan growth and the RBI’s regulatory clampdown will strengthen the financial system in the medium term.

RBI Governor Shaktikanta Das had also said last month that the country’s growth story remains intact as its fundamental drivers, consumption and investment demand are gaining momentum. He said India is likely to see real GDP growth at 7.2 per cent for FY 2024-25.

The S&P Global report however pointed out that external uncertainties could delay capital expenditure-related growth.
S&P Global Ratings, a division of S&P Global, is a leading credit rating agency that provides independent assessments of creditworthiness for various entities, including corporations, governments, and financial institutions.