New Delhi, 23 September (H.S.): Following similar upward revisions by Moody’s and Fitch Ratings, S&P Global Ratings on Wednesday raised its forecast for India’s gross domestic product (GDP) growth for the current financial year 2026-27 to 7 per cent.

In its latest report, titled “Economic Activity for Asia Pacific”, the global rating agency revised its GDP growth projection for India from 6.6 per cent to 7 per cent for the financial year ending March 31, 2027. S&P also projected average retail inflation, measured by the Consumer Price Index (CPI), at 5.1 per cent during FY27.

The agency attributed the upward revision to robust industrial activity, healthy consumer demand, strong merchandise exports and an acceleration in government investment.

India’s economy grew by a stronger-than-expected 7.8 per cent in the April-June quarter of the current financial year. S&P said the better-than-anticipated performance was among the factors behind its decision to raise the full-year growth forecast.

“We have therefore raised our GDP growth forecast for the financial year ending March 31, 2027, from 6.6 per cent to 7 per cent,” the agency said.

S&P expects CPI-based inflation to average 5.1 per cent during FY27. It also expects the Reserve Bank of India (RBI) to raise its policy rate by 25 basis points during the financial year.

The latest revision follows an upward adjustment by Fitch Ratings, which has raised its growth forecast for India in FY27 to 6.9 per cent. Moody’s had also revised its projection to 7 per cent last week.

The 7 per cent growth projection places India among the fastest-growing major economies, with the agency’s forecast representing the highest projected growth rate among G20 economies.

India recorded economic growth of 7.8 per cent in financial year 2025-26.

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Hindusthan Samachar / Jun Sarkar