India Ratings Cuts FY26 GDP Forecast To 6.3% From 6.6% Earlier Est Amid Global Uncertainties

India Ratings & Research has revised India’s FY26 GDP growth forecast down to 6.3%, from its earlier estimate of 6.6%, citing rising global uncertainty, US reciprocal tariffs, and weak investment sentiment. The US tariff regime starting August 1, especially under President Trump’s push, is creating a wait-and-watch approach among investors. Sectors like telecom, chemicals, and garments may face capex slowdown, while power and logistics remain resilient. Despite easing inflation and hopes of a good monsoon, strong headwinds persist. The agency’s projection is below the RBI's 6.5% estimate but within the finance ministry’s 6.3–6.8% range.