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India Ratings Cuts GDP Forecast Below RBI Estimate Citing Headwinds
The Daily Guardian
|July 24, 2025
India Ratings and Research (Ind-Ra) has slashed India's GDP projections for 2025-26 to 6.3 per cent, a 30 basis points lower than its earlier forecast of 6.6 per cent in December 2024.
Real GDP growth for 2025-26 is projected at 6.5 per cent by the RBI in the June MPC meeting.
The rating agency cited that an uncertain global scenario from the unilateral tariff hikes by the US for all countries and weaker-than-expected investment climate as the major headwinds.
The major tailwinds, according to Ind-Ra, are monetary easing, faster-than-expected inflation decline, and likely above-normal rainfall in 2025, said Devendra Kumar Pant, Chief Economist and Head Public Finance, India Ratings and Research.
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