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The US dollar strengthened and the Indian rupee traded lower on Wednesday. The Global Credit Outlook 2024 released by Standard & Poor’s shows that India is expected to become the fastest growing major economy in the next three years. S&P forecasts that India will grow at 7% in fiscal 2026-27. The key hurdle, however, is whether India can effectively develop into the next major global manufacturing hub.
On Tuesday, India’s S&P Global Services Purchasing Managers’ Index (PMI) fell to 56.9 in November from 58.4 in October, below expectations of 58.0. This number marks the slowest growth rate since November 2022, but the index remains firmly above the 50 boom-bust line.
The Reserve Bank of India (RBI) will hold a three-day Monetary Policy Committee (MPC) meeting starting Wednesday. Markets expect the Reserve Bank of India to keep the repo rate unchanged at 6.5% as gross domestic product (GDP) growth gains momentum and core inflation moderates.
