S&P Global Projects India’s GDP Growth at 6.5% for FY26 and Retains Fastest-Growing Major Economy Status.

In September 2025, Standard and Poor’s (S&P) Global India Research released its latest outlook projecting India’s Gross Domestic Product (GDP) growth at 6.5% for FY2025-26 (FY26).

      - The report underlines India’s resilience and its continued position as the world’s fastest-growing major economy despite prevailing global economic challenges.

Main Point :-   (i) India’s strong domestic consumption, rising private investments, and favorable monsoon prospects are expected to drive growth momentum. The report emphasizes supportive macroeconomic conditions, easing inflation, and policy measures that will sustain economic activity.

      (ii) Global headwinds such as geopolitical tensions in the Middle East and tariff policies of the United States may weigh on India’s export performance, but lower crude oil prices and likely RBI interest rate cuts are expected to cushion the impact.

(iii) The expansion of private credit, supported by India’s robust insolvency and bankruptcy framework, will continue to bridge financing gaps left by traditional lenders, providing further impetus to the economy.