S&P Global Ratings raises India FY27 growth aim to 7% from 6.6%, estimates 25 bps RBI rate hike
S&P cited strong June-quarter growth, healthy consumption and investment, and said inflation and weather risks could push the RBI to raise rates by 25 basis points.
- S&P Global Ratings raised India's FY27 real GDP growth forecast to 7% from 6.6% on Wednesday, citing stronger-than-expected June-quarter performance and expecting the Reserve Bank of India to raise policy rates by 25 basis points.
- Robust industrial activity, healthy consumption, and accelerating government investment drove the June-quarter expansion, buffering India's domestic economy against persistent geopolitical and weather-related risks.
- Moody's, Fitch, and the Asian Development Bank similarly upgraded forecasts this week, though agencies warn cumulative monsoon rains ran 15% below normal through September 9, threatening agricultural output and food inflation.
- Fitch projects the RBI will raise policy rates to 5.5% in October, then to 5.75% in early 2027, balancing persistent inflation and domestic demand pressures.
- Growth momentum is expected to moderate in the second half of FY27, with the OECD projecting a transition from 7.8% expansion in FY26 to 7.1% in FY27 as purchasing power weakens.
21 Articles
21 Articles
OECD becomes latest global agency to upgrade India’s growth, up 2026-27 expansion to 7.1%
This comes soon after the three most-recognised global ratings agencies — Moody’s, S&P Global, and Fitch Ratings — raised their respective growth outlooks for India over the last week.
Fitch Lifts India FY27 Growth Forecast to 6.9%, Expects Investment to Rise over 10%
Get latest articles and stories on Business at LatestLY. India’s economic growth is expected to moderate over the remainder of the financial year, but private investment is likely to remain a key support, with Fitch Ratings raising its FY2026-27 GDP growth forecast to 6.9 per cent from 6.4 per cent earlier in its latest report. Business News | Fitch Lifts India FY27 Growth Forecast to 6.9%, Expects Investment to Rise over 10%.
The world's confidence in India's economic growth is growing. Despite a difficult global environment, high oil prices, and geopolitical tensions, major agencies are raising their estimates for India's growth. S&P Global has now raised its forecast for India's real GDP growth for the fiscal year 2026-27 from 6.6% to 7%.
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