Overview
- S&P kept its FY26 GDP projection at 6.5% and forecast 6.7% for FY27, describing risks as evenly balanced.
- The agency expects growth to be driven more by consumption, citing the higher income‑tax rebate, lower GST on about 375 items, and the RBI’s June rate cut to 5.5%.
- Elevated US tariffs are weighing on export‑oriented manufacturing, though S&P notes early signs Washington may reduce some duties.
- India’s real GDP grew 7.8% in April–June, the fastest pace in five quarters, providing a base for the outlook.
- Official July–September GDP data will be released on November 28, offering a clearer read on the near‑term trajectory.