NEW DELHI: India is expected to post strong economic growth in the coming quarters, even as inflation, led by food prices, is likely to remain elevated, S&P Global Ratings said on Wednesday.

The economy is expected to record 9.5 percent growth in the current fiscal year, followed by a 7 percent expansion in the next year, it said, adding high nominal GDP growth would be important for ensuring fiscal consolidation going forward. "Given India's weak fiscal settings and a high stock of debt around 90 percent of Gross Domestic Product (GDP), the nominal GDP growth is going to be very important to prevent any further erosion of fiscal settings in the country and to enable some degree of fiscal consolidation going forward," S&P Global Ratings Director  Andrew Wood said.

 He said the fiscal deficit would remain elevated over the next two years but debt/GDP ratio is expected to stabilize or flatten out. Andrew further said India's external position has strengthened in the context of the pandemic and India has been generating forex reserves at a record pace. "India's external position is very strong and this is quite supportive of India's sovereign rating despite the fact that we have had this deterioration in fiscal position concurrently," he added.

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