S&P Global Market Intelligence (S&P Global) Cuts India FY27 Growth Forecast to 6.6%

Key facts

• S&P Global Market Intelligence (S&P Global) has lowered India's economic growth forecast for the financial year 2026-27 (FY27) to 6.6% from an earlier projection of 7.1%.
• The revision is driven by risks associated with the Iran war, which may lead to narrowing fiscal space and potential constraints on infrastructure-related capital expenditure.
• India's Gross Domestic Product (GDP) growth for the financial year 2025-26 (FY26) is estimated at 7.6% according to official figures.
• The debt-to-GDP ratio is expected to rise to 57.5% from 56.1% in FY26, which could delay the long-term target of 49-51% by the financial year 2030-31 (FY31).
• The services sector is anticipated to expand its share in the national GDP to nearly 55% by 2030, supported by services-focused free trade agreements (FTAs) and medical tourism.