Standard and Poor's says India a bright spot in Asia, raises GDP forecast

Standard and Poor's (S&P) sharply raised India's growth forecasts for the next several years to reflect a recent change in how gross domestic product is calculated by the government, and said the economy should be a "bright spot" in Asia.

The ratings agency raised its India GDP growth forecast to 7.9 per cent from 6.2 per cent for the year ending March 2016, citing as well rising investment and low oil prices.

The agency also raised its growth forecast for 2016/17 to 8.2 per cent from 6.6 per cent previously.

The revisions come after India this month changed the way it measures Asia's third-largest economy.

"India should be the Asia-Pacific region's bright spot," S&P said in a statement.

At the same time, the ratings agency lowered growth forecasts for a slew of Asian countries, including China and Japan.

S&P currently rates India at "BBB-" with a "stable" outlook.

The agency earlier this week said India must boost growth, cut its fiscal deficit and fulfil promises of financial and fiscal reforms to justify an upgrade in a credit rating.

(Reuters)