S&P Global sticks with India's 6.5% growth forecast for 2026

Business Nov 24, 2025

S&P Global isn't changing its mind—India's economy is still on track for 6.5% growth in FY26, thanks to strong spending at home and tax cuts.

What's powering India's growth?

It's really all about people spending more—regular folks driving consumption.
Even with global hiccups like higher US tariffs (which have hit exports and nudged the rupee down), India's huge local market helps cushion the blow.
S&P also thinks easier money policies and tax tweaks will keep the middle class buying.

Inflation outlook: lower now, but rising soon

S&P has trimmed its inflation prediction to just 2.5% for FY25 because food prices have stayed low lately—but they see it going back up to around 5% in FY26.
Despite trade challenges worldwide, India is still expected to outpace other major economies in Asia-Pacific next year.