Mumbai: While the Organization for Economic Co-operation and Development (OECD) has retained India's GDP growth forecast for the current fiscal at 6.9%, global rating agency Standard and Poor's (S&P) said that India's GDP growth in 2022-23 the economic growth rate will be 7.3%.

However, the rating agency said that the retail inflation rate in the country may remain above 6% by the end of 2022. Both institutions said that India's growth rate will remain strong despite the weak global outlook.

The OECD has projected the inflation rate in India to be 6.7%

Earlier in June, the OECD had projected India's growth rate to be 6.9% in its economic outlook as well. However, this estimate is lower than the RBI's estimate of 7.2% for the current financial year. India's growth rate in the last financial year was 8.7%. The OECD has projected the inflation rate in India to be 6.7%.

Many agencies reduced estimates

Amid high inflation and rising interest rates, many rating agencies have cut India's GDP growth rate estimates. Fitch Ratings had slashed the growth forecast for the current fiscal to 7% from 7.8% earlier. India Ratings also lowered its estimate from 7% to 6.9%. 

The Asian Development Bank (ADB) has lowered the forecast from 7.5% to 7%. Whereas the Reserve Bank of India (RBI) expects the Indian economy to grow at the rate of 7.2% in the current financial year 2022-23. India's growth next year will be supported by improving domestic demand.