S&P Global Revises India FY27 GDP Growth Forecast to 6.6%

S&P Global has revised its forecast for India's GDP growth in FY27 to 6.6%. This is a downgrade from its earlier projection of 7.1%. The agency linked the cut to an energy supply disruption in West Asia.

The report pointed to rising crude oil prices, higher freight costs and global economic uncertainty as the main reasons. The Indian economy had earlier grown at 7.6%, so the new figure marks a slowdown in the expected pace.

S&P also flagged concerns over rising inflation, a weakening of the Indian rupee, and a wider current account deficit caused by greater dependence on imported crude oil and gas. The current account deficit is the gap between a country's imports and exports of goods, services and transfers.

The report noted that the government planned stabilisation steps such as an oil hedging fund and maintaining strategic petroleum reserves. For aspirants, GDP forecasts by agencies like S&P, and terms like current account deficit, are common in economy sections.