Despite global economic difficulties, such as the energy and gas crisis, rising prices, and slowing world economy, the Indian economy is demonstrating steady development. The strength of the Indian economy was recognized by three international agencies that raised their forecasts for India's GDP growth.
S&P Global Ratings increased its forecast for India's economic growth to 7% for the fiscal year ending in March 2027. Previously, this figure was 6.6%, representing an increase of 40 basis points. The agency attributed this growth to strong industrial activity, accessibility of medical services, increased goods exports, and growing government investment.
The reason for this increase in the new economic outlook report for the Asia-Pacific region is that the growth rate in India in the June quarter was higher than expected.
Fitch Ratings also adjusted its assessments, raising the forecast for India's GDP for FY27 to 6.9% from the previous 6.4%, which is an increase of 50 basis points. The agency noted that the Indian economy proved to be more resilient than anticipated and maintained growth momentum in the first half of FY27, despite a significant decline in trade due to rising energy prices, and considering the ongoing war in the Middle East.
The Asian Development Bank (ADB), in addition to Fitch and S&P Global, also provided positive data on the Indian economy. Thanks to strong government investments and stable export growth in South Asia, ADB raised its growth forecast for this year from 6% to 6.4%. Furthermore, in its Asian Development Outlook (ADO), ADB lowered the regional inflation forecast for July 2026 from 4.3% to 4.2% for 2026. It is worth noting that Moody's had previously raised India's GDP forecast to 7% last week.