Hyderabad: International ratings agency S&P Global revised its India GDP growth forecast for the 2026-27 financial year and projected slower economic expansion amid global geopolitical tensions.
According to the latest report, S&P estimated India’s GDP growth at 6.6 percent for 2026-27. Earlier, the agency had projected a growth rate of 7.1 percent.
However, the report projected the Indian economy to grow by 7.6 percent during the current financial year 2025-26.
S&P said changing international conditions and geopolitical uncertainties forced the agency to revise its earlier projections.
India GDP growth may face pressure from global tensions
The report stated that tensions in West Asia could disrupt global supply chains and increase crude oil prices.
According to the agency, rising oil prices may increase inflation and raise the country’s import burden. It also warned that pressure on the current account deficit could slow economic growth.
S&P highlighted that India must maintain growth above 8 percent annually to achieve the ‘Viksit Bharat 2047’ target.
The report, titled “India Forward”, recommended immediate reforms in energy security, food security and energy storage policies.
Meanwhile, Moody’s stated that the economic disruptions could remain temporary because of India’s strong foreign exchange reserves.
The Asian Development Bank also projected that India’s GDP growth could slow to 6.3 percent due to tensions in the Middle East.
According to estimates, inflation could rise by 2.4 percent and touch 6.9 percent during the 2026-27 financial year.