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CRISIL raises India’s GDP forecast to 7% for FY26.

Economy & Business | Dated: 03 Dec 2025

CRISIL Ratings Limited has revised India's Gross Domestic Product (GDP) forecast for the full Financial Year 2025-26 (FY26) upwards to 7% from its earlier estimate of 6.5%. This upward revision comes after India recorded a robust real GDP growth of 8.2% in the second quarter (Q2: July-September) of FY26.

🎯 Key Highlights:

  • The agency highlighted that while H1 (first half) saw 8% growth, the growth rate is expected to moderate to 6.1% in the second half (H2: October-March) due to external headwinds like US tariffs.
  • Private consumption has been identified as a key driver, supported by recent GST reforms, income tax cuts, and a good monsoon.
  • Nominal GDP growth for Q2FY26 was recorded at 8.7%, reflecting a moderate inflation environment.

💡 Other Important Facts:

  • New Forecast: FY26 GDP growth raised to 7%.
  • Q2 Performance: Real GDP grew by 8.2%.
  • H2 Projection: Growth expected to slow to 6.1%.

📚 Test Your Knowledge:

According to CRISIL's latest report, what is the projected GDP growth rate for the second half (H2) of FY26?

Correct Answer: 6.1%

🚀 Quick Recap:

About CRISIL

  • Parent Company – S&P Global
  • Type – Credit Rating Agency