GDP seen to grow at 6.5 pc in FY26, 6.7 pc in FY27: S&P

India’s GDP will grow by 6.5% in fiscal year 2026 (ending March 2026) and 6.7% in fiscal 2027, with risks evenly balanced, said S&P Global in the latest edition of Economic Outlook for Asia Pacific. It highlighted that domestic growth remains robust, driven by strong consumption, despite the impact of US tariffs. The spike in the effective US tariff on India is weighing on the expansion of export-oriented manufacturing in the country. But there are signs the US may lower tariffs on Indian products. The agency expects that lowered goods and service tax (GST) rates will support middle-class consumption and complement income tax cuts and interest rate reductions introduced this year. These changes are likely to make consumption a greater driver of growth compared with investment in this fiscal year and the next, said a report.

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