S&P Upgrades India’s FY27 Growth Forecast By 40 Bps To 7%; Expects RBI Rate Hike To 5.50%

S&P Global Ratings has upgraded India’s FY27 real GDP growth forecast by 40 basis points to 7%, citing robust industrial activity and healthy consumption. Strong exports and accelerating government investment are also expected to support growth. S&P expects the Reserve Bank of India to raise the repo rate by 25 basis points to 5.50% in FY27. The rating agency points to inflationary pressures, risks from the West Asia conflict and weather-related uncertainties as factors supporting a potential rate hike. The revised outlook highlights continued domestic demand and investment momentum, while external and inflation risks remain key factors for India’s growth and monetary policy outlook.