S&P Global Raises India's FY27 GDP Forecast to 7.1%, Elevates Growth Outlook

S&P Global Raises India's GDP Growth Forecast

S&P Global has revised its economic forecast for India, increasing the country's GDP growth rate for FY27 to 7.1%, a 40 basis point upgrade. This upward revision reflects the agency's confidence in India's economic momentum, despite global uncertainties.

The ratings agency has also upgraded its growth projections for the subsequent years, with FY28 growth increasing by 20 basis points to 7.2% and FY29 growth rising by 20 basis points to 7.0%. This sustained expansion over the medium term indicates a positive outlook for India's economy.

Reserve Bank of India is expected to maintain a neutral stance on interest rates, balancing growth and inflation dynamics. However, S&P Global has flagged emerging risks from rising fuel prices and elevated crude oil levels, which could push inflation higher.

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Consumer price inflation is now projected to rise to 4.3% in FY27 from 2.5% in FY26, reflecting these pressures.