S&P raises India inflation forecast by 50 basis points to 6.8% for FY23

India is facing the external pressures of higher commodity prices, US dollar dominance, and tightening financial conditions from a position of relative strength: S&P

India has ample foreign exchange reserves to withstand pressure on credit worthiness, S&P Global Ratings said on Thursday, while raising its inflation forecast by 50 basis points to 6.8 per cent for FY23 citing higher commodity prices, rising interest rates and foreign exchange volatility. It kept its growth forecast unchanged at 7.3 per cent for the financial year. 

Speaking at the India Credit Spotlight 2022 webinar, S&P Sovereign & International Public Finance Ratings Director Andrew Wood said the country had a strong external balance sheet and limited external debt, making debt servicing not so expensive.

"The country has built up