S&P Global Upgrades India's FY27 GDP Growth Forecast to 7 Per Cent

New Delhi: S&P Global has upgraded India's GDP growth forecast for the fiscal year ending March 31, 2027, to 7 per cent, citing stronger economic performance in the June quarter. Official data showed India's real GDP expanded 7.8 per cent year-on-year in Q1 FY27, prompting the 40-basis-point upgrade.

Industrial production, domestic consumer spending, merchandise exports and public capital expenditure were identified as key growth drivers. However, S&P expects economic momentum to soften in the second half of FY27 as benefits from GST rationalisation and income-tax cuts gradually fade. Monsoon rainfall running 15 per cent below normal as of September 9 poses risks to agricultural output and food inflation.

In the Asia-Pacific region, S&P projects 4.6 per cent growth in 2026 and 4.4 per cent in 2027, supported by technology exports and accommodative policies. China's growth is forecast at 4.3 per cent for both years.