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S&P Retains India’s FY26 GDP Growth Estimate at 6.5%, Sees 25 bps RBI Rate Cut
GDP: Rating agency S&P expects a 25 basis point rate cut from the RBI this fiscal year. The agency has lowered its inflation forecast for the current fiscal year to 3.2 percent. India's GDP grew at 7.8 percent in the April-June quarter. The agency has projected a growth rate of 6.5% for the current fiscal year. Let's learn more about this.
S&P Global Ratings on Tuesday kept its GDP growth estimate for India at 6.5 percent for the current fiscal year. The rating agency did this estimation based on strong domestic demand in the context of a generally good monsoon.
S&P also stated that it looks for a 25 basis point RBI rate reduction this fiscal year. The agency reduced its forecast for the current fiscal year inflation to 3.2 percent. GDP of India expanded at 7.8 percent in the January-March quarter.
S&P said in a statement, "We estimate India's GDP growth rate to remain stable at 6.5 percent this fiscal year (ending March 31, 2026). We expect domestic demand to remain strong, largely supported by a benign monsoon, income tax and goods and services tax cuts, and a pick-up in government investment."
