23.09.202506:19:10UTC+00S&P Projects India’s Growth at 6.5% in FY25–26

According to S&P Global Ratings, India's economy is projected to maintain a steady growth rate of 6.5% in the fiscal year 2025-26, positioning it as the fastest-growing economy in the Asia-Pacific region. This growth is primarily attributed to robust domestic demand and sustained government investment. The agency's latest report highlights that domestic demand is expected to remain strong, bolstered by favorable weather conditions, reductions in income tax and Goods and Services Tax (GST), and an increase in government spending. Recently, Finance Minister Nirmala Sitharaman suggested that GDP growth in FY25-26 could surpass the anticipated range of 6.3% to 6.8%, spurred by increased consumer spending following recent GST rate reductions and a strong performance in the first quarter. The most recent figures indicate that GDP expanded by 7.8% during the three months ending in June 2025, marking the most significant growth in five quarters.