Indian economy on a strong footing: S&P raises India’s GDP growth forecast to 6.5%, despite fragile global situation
S&P highlighted increasing concerns for the global economy due to Middle East unrest, noting that sustained high oil prices could significantly impact Asia-Pacific through reduced global growth and strain on current accounts of energy-importing nations, affecting prices and expenses.
"However, current conditions on global energy markets--which are well-supplied-- make such long-term impact on oil prices unlikely," S&P said.
Also Read | Nightmare scenario: How Iran, hit by US & Israel strikes, may choke world’s oil supply via Strait of Hormuz - explained
India relies heavily on imports, with 90% of its crude oil requirements and approximately half of its natural gas needs sourced from international markets.
Previously in March, S&P had reduced India's FY26 growth forecast by 20 basis points to 6.3 per cent, citing worldwide uncertainties and US tariff impacts.
Why S&P has raised India’s GDP growth outlook
In its Tuesday release of Asia Pacific Economic Outlook, S&P indicated that strong domestic demand particularly helps limit economic deceleration in countries with lower exposure to goods exports, such as India.
"We see India's GDP growth holding up at 6.5 per cent in fiscal 2026 (year ending March 31, 2026). That forecast assumes a normal monsoon, lower crude oil prices, income-tax concessions and monetary easing," S&P said.
The growth projections by S&P align with the Reserve Bank of India's recent forecast of 6.5 per cent made earlier this month.
Also Read | Reducing acute dependence, countering China’s near monopoly: India readies Rs 5,000 crore scheme for rare earth minerals
S&P's report indicates that elevated US import duties and the associated uncertainty would adversely affect global trade, investments and economic expansion.
The situation in the Middle East has intensified during the past 12 days, with American forces targeting Iran's three primary nuclear installations. The United States entered the conflict following exchanges between Israel and Iran.
Top 10 Largest Economies In The World 2025: What are the 10 largest economies in the world? Did you know that India, which currently stands at the 5th position, will soon become the world’s 3rd largest economy by overtaking Germany and Japan? India is the world’s fastest growing major economy and its nominal GDP has grown 100% in the last 10 years! But even so, as per IMF’s 2025 projection, the GDP of US and China - the world’s largest and second largest economies - will be 7.3 times and 4.6 times respectively - that of India! We take a look at the world’s top 10 largest economies by nominal GDP size as per IMF and when India will become the third largest, next only to the US and China:
Top 10 largest economies 2025: The United States of America will continue to be the world’s largest economy in 2025, according to the IMF's latest World Economic Outlook update. The IMF has predicted that the US economy will have a nominal GDP of $30507.217 billion in 2025. (AI image)
Top 10 largest economies in the world 2025: China will rank second on the list of the world’s top 10 largest economies in 2025, as per IMF’s estimates. The latest WEO report pegs China’s GDP for 2025 at $19,231.705 billion. (AI image)
Germany will continue to be the world’s third largest economy in 2025 as well. According to the IMF, Germany’s nominal GDP in 2025 will be around $4,744.804 billion. (AI image)
The world's fifth largest economy is India! According to the IMF, India's nominal GDP in 2025 is likely to be $4,187.017 billion. India will overtake Japan to become the 4th largest economy in 2025. In the coming years, it will surpass Germany to rank 3rd in the list of the top 10 largest economies in the world. IMF estimates see India becoming the 3rd largest economy in 2028 with a GDP of $5,584.476 billion. (AI image)
Japan is currently the world’s 4th largest economy in terms of nominal GDP. In 2025, it will slip to the 4th position with a GDP of $4,186.431 billion, according to IMF’s WEO estimates. (AI image)
The United Kingdom ranks 6th on the list of world’s top 10 largest economies by nominal GDP size for 2025. IMF’s latest estimates peg the UK's GDP at $3839.18 billion for 2025. (AI image)
France will hold the position of the world’s 7th largest economy in 2025, as per IMF’s latest WEO report. In 2025, France’s nominal GDP is expected to be $3,211.292 billion. (AI image)
Top 10 largest economies in the world 2025: Italy - with an 8th rank on the list - is estimated to have a nominal GDP of $2,422.855 billion in 2025, according to IMF’s World Economic Outlook report. (AI image)
Canada will hold the 9th rank on the list of the world’s top 10 largest economies in 2025. The IMF's latest outlook estimates that in 2025, Canada’s GDP will be $2,225.341 billion. (AI image)
Stay informed with the latest business news, updates on bank holidays and public holidays.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
- China plays hardball! After choking rare earth magnets supply, China blocks important agriculture-related shipments to India; continues exports to others
- Donald Trump’s tariff wars deal a blow! US economy shrinks 0.5%; worse than estimates
- Betting big on India! US giant JPMorgan leases office space in Mumbai’s Bandra-Kurla Complex for Rs 1,000 crore; total rental may hit Rs 2,500 crore
- Indian team in US for fresh talks on trade deal
- ITR filing last date FY 2024-25 extended: Will penal interest be charged if final tax paid after July 31? Here’s what experts say
- “I can’t afford to pay”: Dwyane Wade’s wife Gabrielle Union opens up about financial pressures despite the NBA legend’s massive net worth
04:17 Zohran Mamdani: Congress's Abhishek Singhvi slams Indian-origin NYC mayoral candidate; says when he speaks, 'Pakistan PR takes day off'- Why Huawei's new laptop is being regarded as evidence of how America's 'China ban' is hurting one of the biggest Chinese company
- Noshir Gowadia: India-born engineer developed propulsion system of B-2 bombers; later jailed for helping China build cruise missile
- 'Picture of pure innocence': Baby elephant stops for a quick snack on road; heartwarming moment goes viral
- Dubai: 21 convicted and fined Dh25.2 million in one of the biggest residency visa fraud schemes
- China plays hardball! After choking rare earth magnets supply, China blocks important agriculture-related shipments to India; continues exports to others
- ‘End of New York City as we know it…’: Why Zohran Mamdani’s possible win in mayoral race has Wall Street fretting; sense of doom prevails
- Sebi regulations: Tightens rules on portfolio breaches; must rebalance all passive mutual fund breaches within 30 days
- Delhivery stake sold: Morgan Stanley, Citigroup and 6 others enter deal; buy 1.6% stake for Rs 461 crore
- Bank holidays: Will banks be closed on June 27 for Jagannath Rath Yatra? Check details
- Corporate debt levels: Indian companies’ debt growth slows to 2.9% in FY25; firms turn inwards for funds
- Energy sector futures: NSE to launch electricity futures in coming weeks; fees waived for first 6 months
- Badshah rocks Paris with diamond ‘Om’ necklace and Hermes drip!
- 8 Ayurvedic remedies that can be useful during emergencies
- These 5 Zodiac Signs Will Experience Powerful Soul Connections This Summer
- 10 baby boy names that mean “the chosen one”
- 9 compelling reasons for students to meditate every day
- 10 quotes by Franz Kafka that make people think deeply and overthink life
- Keerthy Suresh radiates grace
- 'Kannappa' actor Vishnu Manchu's stylish attires
- From Burmilla to Turkish van: Here are the planet’s rarest cat breeds
- 8 tall indoor plants that enhance the aesthetics of the home
- 7 crocodilian species that can be dangerous to humans
- Exclusive- When entrepreneur Chef Gauri reacted to Peyush Bansal and Anupam Mittal's constant grilling in Shark Tank India 4; says 'It didn't go down well with me...'
- World’s top 10 sea turtle nesting beaches
- He did 300 films, married 5 times, acted with Amitabh and Govinda—yet died alone and forgotten
- Bezos-Sánchez wedding kicks off: Guest list, invitations, and first photos of the couple revealed
- From Pokkiri to Jana Nayagan: Thalapathy Vijay’s 5 iconic police roles in Tamil film
- 7 of the world’s most vibrant and colourful cities
- 6 simple yoga poses that will help balance hormones and regulate thyroid functioning
- Is that mole dangerous? How to spot early signs of skin cancer
- From Aly Goni meeting Jasmin Bhasin’s paternal family for the first time to buying a perfume for approximately Rs 50,000: The couple enjoy heartwarming moments