S&P raises India’s FY26 GDP growth estimates to 6.5%

S&P had last month lowered India's FY26 growth estimates by 20 basis points to 6.3 per cent citing global uncertainties and US tariff shocks. In its Asia Pacific Economic Outlook released on Tuesday, S&P said domestic demand resilience is particularly relevant in limiting the economic slowdown in economies less exposed to goods exports such as India. "We see India's GDP growth holding up at 6.5% in fiscal 2026 (year ending March 31, 2026). That forecast assumes a normal monsoon, lower crude oil prices, income-tax concessions and monetary easing," S&P said. S&P's growth estimates for India is in line with the projections made by central bank RBI earlier this ASFI FORTNIGHTLY BULLETIN, JUNE – PART 2, 2025 3 month at 6.5%.In the report, S&P said it expects the increase in US import tariffs and the uncertainty about them to harm trade, investment and growth globally. The crisis in the Middle East has escalated over the last 12 days with US military strikes on Iran's three most critical nuclear facilities. US joined the war against Iran after Israeli strikes and counters trikes by Iran.