S&P Global has projected that India will maintain strong economic momentum, with GDP growth estimated at 7.1% in FY27 despite ongoing geopolitical tensions in West Asia.
In its latest economic outlook, S&P Global highlighted that India continues to be among the fastest-growing major economies, supported by robust domestic demand, steady export performance, and a gradual recovery in private investment.
The report noted that India’s growth trajectory remains resilient even as global uncertainties, including rising crude oil prices and geopolitical disruptions, pose challenges to the broader Asia-Pacific region.
Across Asia-Pacific (excluding China), economic growth is expected to improve to around 4.5% in 2026, driven by strong domestic activity and expanding technology-linked sectors. India is expected to play a key role in this regional growth.
India’s economic outlook is further supported by healthy consumption trends and improving investment activity, which are likely to offset external risks such as trade disruptions and geopolitical tensions.
Meanwhile, China’s growth is projected to moderate to around 4.4% in 2026 due to weak domestic demand, a struggling property sector, and external pressures.
S&P Global also noted that India’s diversified economic base and strong services exports will help cushion the impact of global volatility, particularly fluctuations in energy prices.
On the policy front, the Reserve Bank of India is expected to maintain a stable interest rate environment, adopting a neutral stance to balance growth and inflation.
Inflation in India is projected to ease to around 4.3% in FY27, remaining within a manageable range despite global energy price volatility.
The report further highlighted that demand for technology-driven exports, particularly in artificial intelligence and semiconductor sectors, continues to support trade momentum across the region.
Overall, India’s strong fundamentals and domestic-driven growth are expected to help the economy remain resilient in the face of global uncertainties.
