India growth outlook: S&P sees 6.5–6.7% expansion ahead; warns about US tariffs

India’s system is expected to stay firmly connected a beardown maturation way implicit the adjacent 2 years, with S&P Global Ratings projecting 6.5 per cent enlargement successful the existent fiscal and 6.7 per cent successful the next.

The bureau said a operation of taxation cuts and monetary argumentation easing volition bolster consumption-led maturation contempt the resistance from higher US tariffs.As cited by quality bureau PTI, S&P noted that India’s existent GDP grew 7.8 per cent successful April–June, the fastest gait successful 5 quarters. Official GDP numbers for July–September volition beryllium released connected November 28. “We expect that India’s GDP volition turn by 6.5 per cent successful fiscal twelvemonth 2026… and 6.7 per cent successful fiscal 2027, with risks evenly balanced,” S&P said successful its Economic Outlook Asia-Pacific report, adding that beardown home depletion continues to enactment momentum.The RBI has forecast 6.8 per cent GDP maturation for the existent fiscal, compared to 6.5 per cent past year, PTI reported.According to S&P, securing a commercialized statement with the US would assistance trim uncertainty and assistance confidence, peculiarly for labour-intensive sectors. It added that lowered GST rates, combined with income-tax cuts and involvement complaint reductions this year, volition propulsion depletion to play a larger relation successful maturation than concern successful FY26 and FY27.

The government’s Budget for FY26 raised the income-tax rebate bounds to Rs 12 lakh from Rs 7 lakh, providing Rs 1 lakh crore successful alleviation to the mediate class. In June, the RBI chopped argumentation rates by 50 ground points to a three-year debased of 5.5 per cent. Additionally, GST rates connected astir 375 items were slashed from September 22, making mass-consumption goods cheaper, PTI noted.S&P said elevated US tariffs proceed to measurement connected India’s export-oriented manufacturing, though determination are aboriginal signs Washington whitethorn little duties connected immoderate Indian products. The bureau added that the US’s revised commercialized argumentation attack is forcing governments and firms to absorption connected securing exemptions, diverting resources from productivity-enhancing efforts.