S&P raises India's GDP forecasts, says it's a bright spot in Asia

MUMBAI (Reuters) - Standard & Poor's 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 S&P raised its India GDP growth forecast to 7.9 percent from 6.2 percent 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 percent from 6.6 percent 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. (Reporting by Neha Dasgupta; Editing by Gopakumar Warrier)