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S&P Global Ratings has maintained its forecast for India's FY25 GDP growth at 6.8 per cent, but the forecasts for FY26 and FY27 were cut by 20 basis points to 6.7 per cent and 6.8 per cent respectively.
High interest rates and reduced fiscal stimulus are likely to curb urban demand.
While purchasing manager indices stay strong, other indicators suggest temporary slowing of momentum, it noted.

S&P Global Ratings recently maintained its forecast for India's gross domestic product (GDP) growth in fiscal 2024-25 (FY25) at 6.8 per cent, but the forecasts for FY26 and FY27 were reduced by 20 basis points to 6.7 per cent and 6.8 per cent respectively.

High interest rates and reduced fiscal stimulus are likely to curb urban demand in India. While purchasing manager indices remain strong, other indicators suggest temporary slowing of momentum, notably due to a setback in the construction sector during the September quarter, the global rating agency noted.

India's central bank has projected the country’s GDP growth at 7.2 per cent for FY25.

India's economy expanded by 8.2 per cent in FY24.

S&P Global Ratings pointed to climate change-related disruptions and supply shocks in agriculture as key contributors to rising food prices in the country, complicating the inflation outlook.

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S&P Global cuts Indian growth forecast to 6.7% for FY26, 6.8% for FY27

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