S&P Global Ratings has revised its forecast for India’s GDP growth in FY26 downward to 6.3%, citing concerns over a slowing global economy. This adjustment comes as external headwinds—including tightening financial conditions and subdued global demand—are expected to weigh on the country’s export and manufacturing sectors.
According to the report, while India remains one of the fastest-growing major economies, the drag from the global slowdown is likely to temper its momentum. S&P highlighted that domestic demand, resilient services, and strong public investment will continue to act as key growth drivers, but risks from global uncertainty cannot be ignored.
Analysts at S&P also mentioned that inflationary pressures, though easing, and volatile financial markets remain critical factors to monitor over the next 12 to 18 months.
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Source (full link):
https://www.business-standard.com/economy/news/sp-cuts-india-fy26-growth-forecast-to-6-3-percent-global-slowdown-125050201332_1.html
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