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S&P Global Market Intelligence Forecasts 6.4% GDP Growth for India in FY25 and FY26.

Banking & Finance | Dated: 26 Feb 2025

In February 2025, S&P Global Market Intelligence, based in New York, USA, projected India's Gross Domestic Product (GDP) to grow at 6.4% for both Financial Year 2024-25 (FY25) and FY26. The global analytics firm highlighted that monetary and fiscal stimulus will assist the Indian economy in addressing the growing challenges in the global market.

🎯 Key Highlights:

  • - The latest projection for FY25 is slightly lower than its previous estimate of 6.5%, while the projection for FY26 remains unchanged at 6.4%, as per the December update.

💡 Other Important Facts:

  • (i) The global firm has forecasted India's GDP to slow down further to 6.2% in FY27, with an expected increase to 6.6% in FY28.
  • (ii) The firm emphasized that the tax relief measures announced by the Ministry of Finance (MoF) in the Union Budget for FY25, coupled with the 25 basis point (bps) policy rate cut by the Reserve Bank of India (RBI) in February 2025, are expected to support domestic demand in FY25.
  • (iii) However, they may not be enough to completely counterbalance the impact of external headwinds on growth.

📚 Test Your Knowledge:

What is the projected GDP growth rate for India in FY25 and FY26, according to S&P Global Market Intelligence's recent forecast?

Correct Answer: 6.4%

🚀 Quick Recap: