S&P: Economy set to grow strongly in the new year, repo rate to be reduced marginally

S&P Global Ratings expects the Indian economy to grow strongly in 2025 as well with GDP growth slowing in the second quarter of the current financial year. Also, if inflation pressure subsides, the RBI may cut the repo rate marginally in the new year. S&P Global Ratings economist Vishrut Rana said strong urban consumption, stable growth in the service sector, and continued investment in infrastructure will strengthen the economy in 2025.

The global rating agency further said that in its latest scenario for India for the year 2025, creating enough jobs and increasing labor force participation, which would further improve infrastructure as well as technology, strong balance sheets of the public, and homes would provide additional support to accelerate economic growth.

S&P has maintained growth in GDP for the current financial year at 6.8 percent, as against an estimated growth rate of 6.9 percent in 2025-26.