Overview
- S&P Global Ratings boosted India’s GDP growth forecast for fiscal 2025-26 to 6.5%.
- The upgrade is based on expectations of a normal monsoon, easing crude oil prices, income-tax relief and potential interest rate cuts.
- The Reserve Bank of India projects 6.5% growth for FY26 and has trimmed its inflation outlook to 3.7%.
- Icra retained its own FY26 growth forecast at 6.2%, citing well-distributed rains and crude oil at around $70 a barrel while warning of elevated global risks.
- S&P also sees India growing 6.7% in FY27 and expects inflation to average 4% in 2025, noting that well-supplied energy markets temper risks from Middle East tensions.