India’s Economic Growth Forecast Raised to 6.5% by S&P Global

S&P Global has raised India’s economic growth forecast for the current financial year to 6.5%, up from its earlier estimate of 6.3%. The revised outlook reflects growing confidence in the Indian economy’s ability to navigate global uncertainties and sustain strong domestic demand. According to S&P, the country is benefiting from falling crude oil prices, a normal monsoon, and signs of monetary easing, all of which are expected to support both consumption and investment.

This upward revision comes at a time when the global economic situation remains fragile. High inflation, geopolitical tensions, and uncertain demand across major economies have created pressure on international markets. However, India has managed to stay resilient. With strong fundamentals and robust domestic activity, the economy is showing signs of steady and sustainable growth. S&P believes that India’s economic momentum is largely driven by internal demand, rather than exports, which makes it less vulnerable to global shocks.

A normal monsoon is expected to support agriculture and rural consumption, while falling oil prices will help reduce costs for transport and production, easing inflationary pressures. Additionally, expectations of looser monetary policy in the near future could make borrowing cheaper, encouraging businesses to invest more and consumers to spend. These factors together create a favorable environment for growth in sectors like manufacturing, construction, services, and retail.

S&P also pointed out that the Indian economy has shown flexibility in recent years, managing to recover strongly after the pandemic and continuing to grow despite global headwinds. The country’s digital push, infrastructure expansion, and reforms in tax and banking sectors have also added to the long-term growth potential. While there are still risks such as external trade disruptions or global financial instability, India’s broad-based economic activity provides a cushion against such threats.

The new forecast aligns with other estimates by domestic and international agencies, which also see India growing above 6% in the coming year. With stable inflation, strong domestic consumption, and improving investor confidence, India continues to be one of the world’s fastest-growing major economies. The revised forecast by S&P Global adds to the optimism about India’s economic path and highlights the country’s growing strength in an otherwise uncertain world.