S&P Global Ratings has upgraded India's GDP growth projection for fiscal 2025-26 to 6.5%, citing resilient domestic demand, normal monsoon, easing inflation, tax support, and monetary easing. Despite global headwinds, India’s economy remains robust.

Key Points:

• Growth upgraded: S&P raised India’s FY26 GDP forecast by 0.2 percentage points from 6.3% to 6.5% in its Asia-Pacific Outlook report.
• Drivers: The revision reflects expectations of a normal monsoon, lower crude oil prices, income-tax concessions, and supportive monetary policy.
• Domestic demand: S&P noted that strong internal consumption will help cushion growth even as exports face global slowdowns .
• Global risks: While geopolitical instability in West Asia and uncertain US trade policies could threaten growth, they are not expected to derail India’s trajectory.

In line with RBI: The new projection aligns with the Reserve Bank of India’s FY26 growth estimate of 6.5%.