S&P Global Ratings raises India's 2026-27 growth forecast to 7%
Business
Good news for India's economy: S&P Global Ratings just raised its growth forecast for 2026-27 to 7%, up from 6.6%.
The boost comes thanks to strong factory output, solid spending, and rising exports.
Government investments also helped drive a healthy 7.8% growth in the June quarter of FY27, even if it was a bit lower than last quarter.
S&P Global Ratings sees India's growth
Looking ahead, S&P expects GDP to expand 7.2% in FY28 and 7.0% in FY29.
But there are some things to watch: inflation could average about 5.1%, and the RBI is expected to raise its policy rate by 25 bps during FY27 (the current fiscal year, 2026-27).
Plus, with rainfall down by 15% so far this season, there could be some bumps for farmers and food prices, but overall, S&P stays optimistic about India's future.