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S&P Raises India’s FY27 GDP Growth Forecast to 7 Percent
S&P Global now expects India’s economy to grow by 7 percent in FY27.
The forecast was raised because India grew faster than expected in the June quarter.
The economy grew 7.8 percent compared with the same period a year earlier.
Factories, shoppers, exporters and government investment helped support growth.
However, growth may slow later in the financial year.
Tax cuts and GST changes may provide less help over time.
Rainfall has been below normal, which could hurt farms and raise food prices.
S&P Global also expects Asia-Pacific economies to keep growing, although China faces several risks.
S&P Global raised India’s FY27 GDP growth estimate by 40 basis points to 7 percent.
India’s real GDP grew 7.8 percent year-on-year in the June quarter, or Q1 FY27.
Industrial production, consumer spending, merchandise exports and public capital spending supported the stronger outlook.
S&P Global expects growth to moderate in the second half of FY27 as tax and GST benefits fade.
Below-normal monsoon rainfall could weaken agricultural output and increase food-inflation risks.
- Who
- S&P Global and India’s economy.
- What
- S&P Global upgraded India’s FY27 GDP growth forecast to 7 percent after stronger-than-expected quarterly growth.
- Where
- India, with related projections for the Asia-Pacific region and China.
- When
- The upgrade followed Q1 FY27 data; rainfall conditions were assessed as of September 9, 2026.
- Why
- Faster economic growth, industrial production, consumer spending, merchandise exports and public capital expenditure supported the upgrade.
Key facts
- FY27 growth forecast
- 7 percent, after a 40-basis-point upgrade
- Q1 FY27 real GDP growth
- 7.8 percent year-on-year
- Growth drivers
- Industrial production, domestic consumer spending, merchandise exports and public capital expenditure
- Second-half outlook
- Economic momentum is expected to soften
- Monsoon status
- Cumulative rainfall was 15 percent below normal as of September 9, 2026
- Asia-Pacific 2026 forecast
- 4.6 percent, revised upward by 0.2 percentage points
- China growth forecast
- 4.3 percent in both 2026 and 2027
Sources
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