Summary:

Standard & Poor’s (S&P) has raised India’s FY26 GDP growth forecast by 0.2% to 6.5%, citing a normal monsoon, easing crude oil prices, income-tax concessions, and expected interest rate cuts. In its Q3 2025 Asia-Pacific Outlook, S&P said resilient domestic demand will drive growth despite global trade and geopolitical tensions. Inflation is not a significant threat, allowing more rate cuts across the region. While global uncertainties may affect exports, strong internal consumption will cushion growth. S&P also reaffirmed that India is poised to benefit from global supply chain shifts and become the world’s third-largest economy by FY30–35. Meanwhile, the World Bank and IMF have kept their FY26 forecasts lower, at 6.3% and 6.2% respectively.

Source: IBEF

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