Ind-Ra Cuts GDP Forecast Below RBI Estimate Amid Global Headwinds

India Ratings and Research has lowered India's GDP growth forecast for 2025-26 to 6.3%, citing global uncertainty and weak investment sentiment.

- TBG NETWORK

India Ratings and Research (Ind-Ra) has slashed India's GDP projections for 2025-26 to 6.3 percent, a 30 basis points lower than its earlier forecast of 6.6 percent in December 2024.

Real GDP growth for 2025-26 is projected at 6.5 percent 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.