S&P Global raises India FY27 growth forecast to 7% on strong industrial activity

S&P Global Ratings has upgraded its forecast for India's real GDP growth to 7% for FY27, up from its previous estimate of 6.6%. The rating agency cited strong industrial activity, healthy consumer demand, and significant government investment as key drivers of the optimistic outlook.

The Reserve Bank of India is expected to raise interest rates by 25 basis points in response to rising inflationary pressures. However, weather-related risks pose a potential downside to agricultural output in the coming months.