India Ratings & Research (Ind-Ra) has revised its GDP growth forecast for India for the financial year 2025–26 from 6.6% to 6.3%. The downgrade is attributed to global economic uncertainties, rising protectionism, and domestic investment sluggishness.

Despite this, India’s economy remains resilient with support from rural demand and easing inflation.

Key Points:

• India Ratings & Research has reduced India’s FY26 GDP growth estimate to 6.3%, down from its earlier projection of 6.6%.
• The revision is mainly due to external pressures such as global trade tensions, including new U.S. tariffs on Indian goods.
• Weak private investment activity and slower export recovery are also contributing to the lower growth outlook.
• Despite the downgrade, the agency acknowledges strong domestic demand and low inflation as stabilizing factors.
• India’s growth, although moderated, is still expected to remain robust compared to many other major economies facing sharper slowdowns.