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S&P Global Cuts India’s FY26 GDP Growth Forecast to 6.5%.

Economy Business | Dated: 27 Mar 2025

On March 25, 2025, New York, the United States of America (USA)-based S&P Global Ratings (formerly Standard & Poor's) released its Economic Outlook for Asia-Pacific (APAC) 2025. It lowered India's Gross Domestic Product (GDP) growth forecast for the fiscal year 2025-26 (FY26) to 6.5% from the previous projection of 6.7%.

🎯 Key Highlights:

  • - This revision comes amid global economic pressures and assumes normal monsoon conditions and softer prices for commodities, particularly crude oil.

💡 Other Important Facts:

  • (i) The lowered growth forecast is mainly due to external factors, such as rising United States (US) tariffs and the global pushback on globalization, which are expected to affect economies in the APAC region, including India.
  • (ii) Despite the external challenges, S&P Global Ratings expects India's domestic demand to remain robust, supported by factors such as cooling food inflation and tax incentives announced in India's Union Budget 2025-26.

📚 Test Your Knowledge:

Recently, S&P Global lowered India's GDP growth forecast for FY26 to what percentage?

Correct Answer: 6.5%

🚀 Quick Recap: