S&P Global Ratings Revises India's GDP Projection Amid Global Trade Tensions

S&P Global Ratings has adjusted India's GDP growth forecast to 6.5% for the fiscal year ending March 2026 due to external pressures like US tariffs and globalization trends. Despite these challenges, domestic demand is expected to remain strong, supported by soft commodity prices and reduced borrowing costs.

S&P Global Ratings has revised its projection of India's GDP growth to 6.5% for the fiscal year ending March 2026, citing the effect of rising US tariffs and a broader pushback against globalization on the economies of the Asia-Pacific (APAC) region.

The agency, however, emphasized that India's domestic demand is anticipated to maintain its momentum, bolstered by cooling food inflation, tax benefits, and lower borrowing costs which could boost discretionary spending.

Central banks in the APAC region, including the Reserve Bank of India, are expected to continue reducing interest rates to support economic growth amidst these external pressures.

(With inputs from agencies.)