The S&P Global has raised India’s GDP growth forecast for FY27 (2026-2027) by 40 basis points to 7.1%. The global rating agency has raised the FY28 GDP growth forecast as well, pushing it up by 20 basis points, adjusting the growth forecast to 7.2%. Furthermore, S&P has also increased its forecast for FY29 by 20 basis points to 7.0%.S&P Raises GDP Forecast
The rating agency expected the Reserve Bank of India to hold onto the interest rate, and it also expects the central bank to maintain a ‘Neutral Stance’ in the base case. India’s key repo rate currently stands at 5.25%.
S&P also expects CPI inflation in India to rise to 4.3% in FY27 from 2.5% in FY26. Retail inflation for February, according to the newly released CPI series, stood at a 10-month high of 3.21%.The ongoing war in West Asia and the ripple effect of the same on oil-import-dependent nations like India have also been taken into consideration.
The S&P flagged emerging risks from rising fuel prices and elevated crude oil levels; this, in turn, could push inflation higher.Fitch Ratings The RBI, after its latest MPC meeting in February, raised its real GDP growth forecast for the financial year 2025-26 (FY26) to 7.4%.In August 2025, S&P Global upgraded India’s sovereign rating to BBB from its earlier rating of BBB-.Earlier this month, another rating major, Fitch, said that it sees India’s FY26 GDP Growth At 7.5%. Fitch also said that India’s inflation may rise to 4.5% by December. The agency also forecasted India’s GDP growth slowing to 6.7% in FY27 and 6.5% in FY28.Also Read: India’s sovereign rating upgraded by S&P Global to BBB; outlook stable
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