SBI Cuts India’s GDP Growth Forecast, Rupee Will Break Further Against Dollar

More than 15 days have passed since the war between Russia and Ukraine and the conflict is not taking its name to stop. Both countries are suffering huge losses from this war and its affect is clearly visible on other countries of the world as well. Meanwhile, India’s largest lender State Bank of India (SBI) has slashed India’s GDP growth forecast to 7.8 per cent due to the Ukraine crisis. Earlier, SBI had projected 8 per cent GDP growth. 

Rupee may slip up to 77.5 

It is worth mentioning that Russia-Ukraine war is becoming a cause of many big challenges for India too. If we look at the inflation data released on Monday in the country, both wholesale and retail inflation has increased in February. The main reason for this is the rise in crude oil due to the Russia-Ukraine war. Due to the rise in crude oil, pressure on the Indian currency rupee is also increasing. SBI economists say that if the war between the two countries escalates further, the depreciation of the rupee against the dollar will increase further. It has been estimated in the SBI report that by June 2022, the rupee may slip to the level of 77.5 against the dollar.