S&P Hikes India's FY27 GDP Forecast To 7%, Predicts RBI Rate Hike Amid Strong Growth
S&P Global Ratings has raised India's GDP growth forecast for financial year 2026-27 by 40 basis points to 7.0 per cent, revising its previous projection of 6.6 per cent upward. The rating agency cited robust industrial activity, healthy domestic consumption, strong goods exports, and accelerating government investment during the first quarter as primary drivers for the revision. Economists at S&P Global also project the Reserve Bank of India's rate-setting panel to hike the repo rate by 25 basis points to 5.50 per cent. The revised projection exceeds the Reserve Bank of India's estimate of 6.7 per cent and matches forecasts from agencies like Moody's. Analysts noted that India continues to maintain economic resilience despite external headwinds, including geopolitical conflicts in West Asia, the Russia-Ukraine war, global trade tariffs, and elevated crude oil prices.
