S&P Global Ratings raises India FY27 growth aim to 7% from 6.6%, estimates 25 bps RBI rate hike
S&P cited stronger June-quarter growth, healthy consumption and rising investment as it joined other ratings firms in forecasting 7% expansion.
- On Wednesday, Global Ratings raised India's FY27 real GDP growth forecast to 7% from 6.6%, citing robust industrial activity, healthy consumption, and strong exports in the June quarter.
- Bullish outlooks from other institutions align with this upgrade; Jefferies projected 6.5% to 7% growth earlier this week, while a ratings agency increased its FY27 estimate to 7% on September 18.
- Global Ratings flagged potential headwinds despite momentum, noting cumulative rains were 15% below normal through September 9, which alongside elevated energy prices could pressure agricultural output and food inflation.
- The Reserve Bank is expected to raise its policy rate by 25 basis points this fiscal year, Global Ratings projects, as consumer inflation averages 5.1% amid persistent cost pressures.
- Growth may moderate in the fiscal year's second half as the initial boost from income tax cuts and GST rationalisation fades, compounded by persistent rupee weakness exceeding 5% this year.
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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%.
S&P Global Ratings raises India FY27 growth aim to 7% from 6.6%, estimates 25 bps RBI rate hike
S&P Global Ratings has upgraded its forecast for India's real GDP growth to 7% for the FY27. Strong industrial activity, healthy consumption, and significant government investment contributed to this optimistic outlook. The Reserve Bank of India is expected to raise interest rates by 25 basis points due to rising inflation. Meanwhile, weather-related risks could affect agricultural output in the upcoming months.
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