New Delhi

S&P Global Ratings on Tuesday retained India’s GDP growth forecast at 6.5% in the current fiscal, citing strong domestic demand amid a largely benign monsoon. S&P also said it expects a 25 bps rate cut by the RBI this fiscal as it revised its inflation forecast down to 3.2% for this fiscal year. India’s GDP grew at 7.8% in the April-June quarter.

“We forecast India’s GDP growth to hold steady at 6.5% this fiscal fiscal. We expect domestic demand to remain strong, supported by a largely benign monsoon season, cuts in the income and the goods and services tax, and accelerating government investment,” S&P said in a statement. S&P said a sharper-than-expected decrease in food inflation will help keep inflation low in the current year.

“This leaves room for further monetary policy

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