<p>New Delhi: India’s GDP growth is likely to remain at 6.5% in the current financial year and may accelerate to 6.7% in 2026-27, S&P Global Ratings said on Monday.</p>.<p>In its latest Economic Outlook for the Asia-Pacific region, S&P Global said India’s GDP growth would be driven by strong domestic demands.</p>.<p>“We anticipate that India’s GDP will grow by 6.5% in fiscal 2026 (ending March 2026) and 6.7% in fiscal 2027, with risks evenly balanced. Domestic growth remains robust, driven by strong consumption, despite the impact of US tariffs,” the rating agency added.</p>.Dubai Tejas crash won't impact future deliveries: HAL.<p>India’s gross domestic product (GDP) expanded by 7.8% in the April-June quarter of the current financial year. The Reserve Bank of India (RBI) has pegged the July-September growth at 7%. The growth momentum is projected to decelerate significantly in the second half of the current fiscal.</p>.<p>According to S&P Global, the Indian economy is likely to maintain the growth momentum in 2025-26 similar to the previous year, despite the US tariff.</p>.<p>“The spike in the effective US tariff on India is weighing on the expansion of export-oriented manufacturing in the country. But there are signs the US may lower tariffs on Indian products,” it said.</p>.<p>The US has imposed a steep 50% tariff on majority of Indian goods effective from August 27. However, the two sides are negotiating a trade deal, which is likely to substantially lower the tariff.</p>.<p>“If India can secure a trade agreement with the US, it will reduce uncertainty and enhance confidence, which would boost labour-intensive sectors,” S&P noted.</p>.<p>Despite external challenges India’s growth momentum is likely to continue on the back of positive domestic factors. “Lowered goods and service tax (GST) rates will support middle-class consumption and complement income tax cuts and interest rate reductions introduced this year. These changes are likely to make consumption a greater driver of growth compared with investment, in this fiscal year, and the next,” S&P Global said.</p>.<p>The rating agency has lowered its projection on India’s consumer price inflation to 2.5% for the current financial year. However, the headline inflation is projected to accelerate to 5% in 2026-27 and remain elevated at 4.4% in 2027-28 and 4.5% in 2028-29. In 2024-25, India’s Consumer Price Index (CPI) inflation stood at 4.6%.</p>.<p>“In India, we have reduced our CPI inflation forecast to 2.5% for the current fiscal, as food inflation remains lower than we anticipated. However, we expect food inflation to normalise and forecast about 5% headline inflation the next fiscal year,” it said.</p>.<p>On the weakness in the value of Indian rupee, S&P Global said, “Capital outflows have contributed to currency weakness. Added uncertainty from unexpectedly high US tariffs and the lack of a trade deal with US have further squeezed the rupee.” The Indian rupee dipped to a record low of Rs 89.49 against a dollar on Friday.</p>
<p>New Delhi: India’s GDP growth is likely to remain at 6.5% in the current financial year and may accelerate to 6.7% in 2026-27, S&P Global Ratings said on Monday.</p>.<p>In its latest Economic Outlook for the Asia-Pacific region, S&P Global said India’s GDP growth would be driven by strong domestic demands.</p>.<p>“We anticipate that India’s GDP will grow by 6.5% in fiscal 2026 (ending March 2026) and 6.7% in fiscal 2027, with risks evenly balanced. Domestic growth remains robust, driven by strong consumption, despite the impact of US tariffs,” the rating agency added.</p>.Dubai Tejas crash won't impact future deliveries: HAL.<p>India’s gross domestic product (GDP) expanded by 7.8% in the April-June quarter of the current financial year. The Reserve Bank of India (RBI) has pegged the July-September growth at 7%. The growth momentum is projected to decelerate significantly in the second half of the current fiscal.</p>.<p>According to S&P Global, the Indian economy is likely to maintain the growth momentum in 2025-26 similar to the previous year, despite the US tariff.</p>.<p>“The spike in the effective US tariff on India is weighing on the expansion of export-oriented manufacturing in the country. But there are signs the US may lower tariffs on Indian products,” it said.</p>.<p>The US has imposed a steep 50% tariff on majority of Indian goods effective from August 27. However, the two sides are negotiating a trade deal, which is likely to substantially lower the tariff.</p>.<p>“If India can secure a trade agreement with the US, it will reduce uncertainty and enhance confidence, which would boost labour-intensive sectors,” S&P noted.</p>.<p>Despite external challenges India’s growth momentum is likely to continue on the back of positive domestic factors. “Lowered goods and service tax (GST) rates will support middle-class consumption and complement income tax cuts and interest rate reductions introduced this year. These changes are likely to make consumption a greater driver of growth compared with investment, in this fiscal year, and the next,” S&P Global said.</p>.<p>The rating agency has lowered its projection on India’s consumer price inflation to 2.5% for the current financial year. However, the headline inflation is projected to accelerate to 5% in 2026-27 and remain elevated at 4.4% in 2027-28 and 4.5% in 2028-29. In 2024-25, India’s Consumer Price Index (CPI) inflation stood at 4.6%.</p>.<p>“In India, we have reduced our CPI inflation forecast to 2.5% for the current fiscal, as food inflation remains lower than we anticipated. However, we expect food inflation to normalise and forecast about 5% headline inflation the next fiscal year,” it said.</p>.<p>On the weakness in the value of Indian rupee, S&P Global said, “Capital outflows have contributed to currency weakness. Added uncertainty from unexpectedly high US tariffs and the lack of a trade deal with US have further squeezed the rupee.” The Indian rupee dipped to a record low of Rs 89.49 against a dollar on Friday.</p>