S&P Global Ratings (S&P) Projects India's FY27 GDP Growth at 6.6%

Key facts

• S&P Global Ratings (S&P) has projected India's real Gross Domestic Product (GDP) growth to slow to 6.6 per cent for the fiscal year ending March 2027, compared to 7.7 per cent in 2025-26.
• The growth projection for the 2026-27 fiscal year aligns with the Reserve Bank of India (RBI) estimate of 6.6 per cent.
• Consumer inflation is forecast to rise to 5.1 per cent in the current fiscal year as manufacturers pass on higher energy costs and fuel prices to consumers.
• The S&P report anticipates a policy rate hike in the second half of the current fiscal year due to inflationary pressures and energy market stress.
• India's economic outlook is impacted by a 43 per cent rainfall deficit recorded by June 22 and the country's reliance on imports for 88 per cent of its crude oil requirements.