Current Context: On 24 November 2025, S&P Global Ratings retained India’s GDP growth forecast at 6.5% for FY26 (2025–26).
- Growth Drivers: Projection supported by tax cuts for middle-class households, RBI’s monetary easing (policy rate cut to 5.5%), and robust domestic consumption.
- Recent Performance: India’s economy grew 7.8% in Q1 FY26, the fastest pace in five quarters, showing resilience.
- Comparisons: RBI projects 6.8% growth for FY26, while IMF forecasts 6.6%, both slightly higher than S&P’s estimate.
- Global Context: S&P noted that a potential US-India trade agreement could reduce uncertainty, though elevated US tariffs remain a challenge.
- Significance: The retained forecast reflects confidence in India’s consumption-led growth model, with risks seen as “evenly balanced” between external shocks and domestic policy support
Question:
Q.1 S&P Global Ratings retained India’s GDP growth forecast for FY26 at what level?a) 6.2%
b) 6.5%
c) 6.8%
d) 7.0%
Answer: b) S&P Global Ratings retained India’s GDP growth forecast at 6.5% for FY26 (2025–26).
