S&P Revises India's GDP Growth Forecast to 6.5% for FY 2025-26

S&P Global Ratings has revised its GDP growth forecast for India for FY 2025-26 to 6.5%. This revision comes after considering factors like a normal monsoon, lower crude oil prices, and ongoing monetary easing in India. These factors are expected to support economic growth in the country.

Global Economic Risks and Oil Price Concerns

The rating agency also expressed concerns about growing risks to the global economy due to instability in the Middle East. S&P pointed out that prolonged increases in oil prices could lead to slower global growth and increased pressures on current accounts, prices, and costs for net energy importers, especially in the Asia-Pacific region. However, the agency mentioned that the current situation in global energy markets, with adequate supply, is unlikely to have a long-term impact on oil prices.

Previous Forecast and Economic Outlook

Earlier, S&P had reduced India's GDP growth estimate for FY 2025-26 to 6.3% due to global uncertainties and U.S. tariff shocks. However, with improved economic conditions, the forecast has now been revised to 6.5%. The agency's latest Asia-Pacific economic outlook, released on June 24, projects India's GDP growth to remain steady at 6.5% for FY 2025-26, ending on March 31, 2026.

Key Highlights

• S&P has revised India's GDP growth forecast for FY 2025-26 to 6.5%.
• The revision is based on a normal monsoon, lower crude oil prices, and monetary easing.
• S&P has raised concerns over the impact of geopolitical instability in the Middle East.
• The agency expects India's GDP growth to remain steady at 6.5% for FY 2025-26.