Despite global headwinds, S&P Global Ratings has raised India’s GDP growth forecast for FY26 to 6.5%. The revision reflects expected normal monsoons, lower crude oil prices, monetary easing, and strong domestic demand. This comes amid geopolitical tensions and concerns over global trade disruption.

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• S&P revises India’s FY26 GDP growth forecast to 6.5%
• Previous projection in March 2025 was 6.3%
• Forecast supported by expectations of normal monsoon and falling crude oil prices
• Monetary easing and income-tax concessions seen aiding growth
• Strong domestic demand shields India from export-led slowdown
• S&P’s forecast matches RBI’s earlier 6.5% projection
• Global risks persist due to US tariffs and Middle East conflict
• India vulnerable as it imports 90% crude oil and ~50% natural gas
• Sustained high oil prices could impact Asia-Pacific current accounts
• S&P says global energy markets well-supplied, long-term oil shock unlikely