India to grow at 7.4% this fiscal, says S&P

India's economy will grow at 7.4 per cent in the current fiscal, which will further improve to over 8 per cent in 2016-17, Standard & Poor's Ratings Services projected on Thursday.

S&P in its 'India Credit Spotlight' newsletter noted that significant reforms are required with Indian corporates and banks currently facing a weak operating environment.

Indian economy grew at 7.3 per cent in last fiscal. The Reserve Bank too has estimated GDP growth in current fiscal to be 7.4 per cent.

The country's economic growth would be 7.4 per cent in fiscal year ending March 31, 2016 and increase to over 8 per cent in 2016-17, it said. This reflects the increasing importance of the Indian economy and its role as a new growth leader in Asia-Pacific, having overtaken China, S&P said.