S&P Global Ratings Raises India's GDP Growth Projections To 7% For This Fiscal

S&P Global Ratings on Wednesday raised India's GDP growth projections for the current fiscal to 7 per cent, citing robust economic activity and forecasting that the RBI could hike interest rates by 25 basis points in FY27.In its Economic Activity for Asia Pacific report, S&P estimates consumer inflation to average 5.1 per cent in FY27.The Indian economy grew higher than expected at 7.8 per cent in the June quarter. S&P said factors like robust industrial activity, healthy consumption, strong goods exports, and accelerating government investment have driven the growth."We have consequently upgraded our GDP growth forecast for the current fiscal year, ending March 31, 2027, to 7 per cent, from 6.6 per cent previously," S&P said, adding growth could ease in the second half of the fiscal year as the tailwinds from General Sales Tax rationalisation and income tax cuts diminish.Weather-related risks warrant close monitoring.