India's Growth Projection Lowered as US Trade Policies Loom

S&P Global Ratings has revised India's economic growth estimates, predicting slower growth due to higher interest rates and decreased fiscal support. The report also highlights challenges for the Asia-Pacific region due to impending changes in US trade policy and global economic conditions in the coming years.

S&P Global Ratings has revised downward its predictions for India's economic growth over the next two fiscal years. The adjustment reflects high interest rates and reduced fiscal stimulus, which are expected to moderate urban demand.

According to the agency's updated economic projections for Asia-Pacific post-US election, India's GDP growth is forecasted at 6.7% for the 2025-26 fiscal year and 6.8% for the following year, slightly down from previous estimates.

China's growth outlook remains stable at 4.8% for 2024, but trade tensions with the US pose new challenges as tariff increases seem likely. The region's growth will be affected by slower global demand and US trade policies, though easing interest rates might help alleviate spending pressures.

(With inputs from agencies.)