Good news for India, S&P retains India’s GDP growth forecast at…, expects strong domestic…
US tariffs on imports from different Asian economies will shape both their export outlook and their role in regional supply chains.
Published: September 23, 2025 3:13 PM IST
S&P Global Ratings on Tuesday maintained India’s GDP growth forecast at 6.5% for the current fiscal, supported by strong domestic demand and a largely favorable monsoon.
The agency also said it expects the RBI to cut rates by 25 basis points this fiscal, after revising its inflation projection down to 3.2% for the year. India’s GDP had grown 7.8% in the April–June quarter.
S&P On India’s GDP Growth
“We forecast India’s GDP growth to hold steady at 6.5 per cent this fiscal year (year ending March 31, 2026). We expect domestic demand to remain strong, supported by a largely benign monsoon season, cuts in the income and the goods and services tax, and accelerating government investment,” S&P said in a statement.
S&P said a sharper-than-expected decrease in food inflation will help keep inflation low in the current year.
“This leaves room for further monetary policy adjustments, and we anticipate a 25 bps rate cut by the Reserve Bank of India this fiscal year,” S&P added.
S&P’s Economic Outlook For Asia-Pacific Region
In its Economic Outlook Asia-Pacific Q4 2025: Growth To Ease On External Strain report, S&P said that across the region, relatively resilient domestic demand should dampen the impact from stronger external headwinds following the increase in US import tariffs and slower global growth.
“Relative to our June assumptions on US tariffs, China has so far fared somewhat better than other Asian economies, and Southeast Asian emerging markets somewhat worse. India has been hit much harder than expected,” S&P said.
(With Inputs From PTI)
Source: www.india.com