S&P Ups India's FY26 GDP Growth Estimates to 6.5%

Sees No Significant Movement on Rupee & Inflation

- OUR CORRESPONDENT

NEW DELHI: S&P Global Ratings on Tuesday upped India's GDP growth forecast for the current fiscal to 6.5 per cent, citing lower crude prices, monetary easing and normal monsoon, and said the ongoing geopolitical tensions are unlikely to put a "significant pressure" on the rupee or inflation.

In its Asia Pacific Economic Outlook, S&P flagged rising risks to the global economy due to the turbulence in the Middle East, saying long-lasting major increase in oil prices could have significant economic impact in Asia-Pacific, notably via slower global growth and pressure on the current accounts of net energy importers, prices and costs.

S&P Global Ratings Economist Vishrut Rana said a key mitigating factor of India is that energy prices are still lower than last year—Brent crude oil traded at roughly $85/barrel a year ago and current prices are still lower.

"This will help contain both current account outflows and domestic energy price pressures—while energy prices may rise moderately, the path of food prices will have a higher impact on inflation. Overall, we do not expect significant pressure on the Indian rupee or inflation," Rana said.