S&P Cuts India's FY26 Growth View to 6.3% Over Tariff Uncertainty

S&P Global Ratings on Friday cut India's growth projections by 0.2 percentage points to 6.3% for the current fiscal year citing uncertainty over the US tariff policy and downside risks from its spill-over to the economy.

- Press Trust Of India

NEW DELHI:

In its report titled "Global Macro Update: Seismic Shift In US Trade Policy Will Slow World Growth", S&P Global Ratings said "we reiterate that there are no winners in a scenario of escalating protectionist policies."

S&P said among Asia-Pacific's major economies, China is expected to see its growth drop by 0.7 percentage points in 2025 to 3.5% and in 2026 to 3%.

S&P projected India's GDP growth to be 6.3% in 2025-26 and 6.5% in 2026-27 fiscal year.

In March, S&P had lowered the FY'26 GDP growth forecast to 6.5%, from 6.7%.