S&P Raises India's FY26 Growth Forecast to 6.5%

S&P Global Ratings on Tuesday raised India's economic growth projection to 6.5% for 2025-26.

- FE BUREAU

This follows a cut in the growth outlook to 6.3% by the agency last month. This is the first upward revision of India's growth for the current fiscal by a major agency.

S&P cited a normal monsoon, lower crude oil prices, income tax concessions, and monetary easing for the revised projection. However, it came close on the heels of heightened volatility in global crude prices after the Iran-Israel tensions and the US bombing of Iran's nuclear facilities.

On May 2, it had cut India's growth projections from 6.5% to 6.3% for 2025-26, citing uncertainty over the US tariff policy and downside risks from its spillover to the economy.