S&P Cuts FY26 GDP Growth Forecast to 6.5%

It expects domestic demand to be solid in most emerging economies

- Press Trust of India

NEW DELHI: S&P Global Ratings on Tuesday cut India's GDP growth projections to 6.5% for the next fiscal as it expects that economies in the APAC region will feel the strain of rising US tariffs and pushback on globalization.

In its Economic Outlook for Asia-Pacific (APAC), S&P said despite these external strains, it expects domestic demand momentum to remain solid in most emerging-market economies.

"India's GDP will grow 6.5% in the fiscal year ending March 31, 2026, we expect. Our forecast is the same as the outcome for the previous fiscal year, but less than our earlier forecast of 6.7%," S&P said.

The forecast assumes that the upcoming monsoon season will be normal and that commodity—especially crude—prices will be soft.