S&P Global Ratings issued its report on Wednesday, 24th June 2026, which predicts that GDP growth of India will decrease in the 2026-27 financial year. The report reveals that the growth rate can fall to 6.6%. It attributes the factors to include energy pressure, poor monsoon, and reduced growth in the world economy.

It should be noted that India recorded a growth rate of 7.7% in 2025-26 financial year following 7.1% growth in 2024-25. However, the growth rate for the financial year ending in March 2027 will be 6.6%.

It is also predicted by the Reserve Bank of India (RBI). Poor rainfall has occurred due to El Nino; until June 22nd, rainfall deficit stood at 43%. Indian government has taken measures such as contingency planning at the state level and recommended suitable crops in case of poor monsoon.

India imports 88% of its crude oil requirements. A rise in global prices increases India's import bill and fuels domestic inflation. The impact of energy stress stemming from the conflict in West Asia is becoming evident; industries are facing a sharp rise in raw material costs, and there are delays in supplier delivery times.

High fertilizer prices are negatively affecting food production, leading to an increase in food prices. Rising inflation is eroding people's purchasing power and slowing down economic growth. S&P stated that consumer inflation would be 0.5–0.6 percentage points higher in the third quarter; it could rise to 5.1 percent in the current fiscal year.

Manufacturers are passing the burden of increased energy costs on to consumers. Prices of petrol, diesel, and cooking gas have also risen recently. All these factors are exerting upward pressure on inflation. S&P expects a hike in policy rates during the second half of the current fiscal year, which could serve as a measure to control inflation.

S&P Global Ratings issued its report on Wednesday, 24th June 2026, which predicts that GDP growth of India will decrease in the 2026-27 financial year. The report reveals that the growth rate can fall to 6.6%. It attributes the factors to include energy pressure, poor monsoon, and reduced growth in the world economy.

It should be noted that India recorded a growth rate of 7.7% in 2025-26 financial year following 7.1% growth in 2024-25. However, the growth rate for the financial year ending in March 2027 will be 6.6%.

It is also predicted by the Reserve Bank of India (RBI). Poor rainfall has occurred due to El Nino; until June 22nd, rainfall deficit stood at 43%. Indian government has taken measures such as contingency planning at the state level and recommended suitable crops in case of poor monsoon.

India imports 88% of its crude oil requirements. A rise in global prices increases India's import bill and fuels domestic inflation. The impact of energy stress stemming from the conflict in West Asia is becoming evident; industries are facing a sharp rise in raw material costs, and there are delays in supplier delivery times.

High fertilizer prices are negatively affecting food production, leading to an increase in food prices. Rising inflation is eroding people's purchasing power and slowing down economic growth. S&P stated that consumer inflation would be 0.5–0.6 percentage points higher in the third quarter; it could rise to 5.1 percent in the current fiscal year.

Manufacturers are passing the burden of increased energy costs on to consumers. Prices of petrol, diesel, and cooking gas have also risen recently. All these factors are exerting upward pressure on inflation. S&P expects a hike in policy rates during the second half of the current fiscal year, which could serve as a measure to control inflation.