S&P Raises India's GDP Growth Forecast to 6.5% for FY26
| Key Aspect | Details |
|---|---|
| Forecast Revision | S&P Global Ratings raised India's GDP growth forecast to 6.5% for FY 2025-26. |
| Previous Forecast | Earlier lowered by 20 bps to 6.3% due to global uncertainties. |
| Key Assumptions | - Normal monsoon (supports agriculture, rural demand). <br> - Lower crude oil prices (aids current account, inflation control). <br> - Monetary easing by RBI (stimulates borrowing). <br> - Income tax concessions (boosts disposable income). |
| Energy Dependency | India imports 90% of crude oil and 50% of natural gas, making it vulnerable to price shocks. |
| Middle East Risks | Escalating tensions (e.g., US strikes on Iran) could disrupt oil supply, impacting Asia-Pacific economies. |
| RBI Alignment | Matches Reserve Bank of India's 6.5% growth projection. |
| Domestic Demand Strength | Resilient domestic consumption reduces reliance on export-driven growth. |
| Global Trade Concerns | US tariff hikes may dampen global trade and investment flows. |