India’s real gross domestic product (GDP) growth is projected to reach 6.6% in the fiscal year 2027, as per a report by S&P Global Ratings. The report highlighted concerns such as energy stress, a sub-par monsoon outlook, and slowing global growth affecting India’s economy.
S&P Global Ratings also anticipates consumer inflation in India to increase to 5.1% this fiscal year due to manufacturers passing on higher energy costs to consumers. The report mentioned recent hikes in administered prices for petrol, diesel, and cooking gas as contributing factors.
The firm suggested a potential policy rate hike in the latter part of the year. It noted that with the current account deficit rising and the rupee weakening, steps have been taken to attract foreign capital inflows to stabilize the situation.
The Asia-Pacific economic outlook is influenced by factors like resilient global activity, energy market challenges, and a tech export boom driven by artificial intelligence (AI). The report emphasized the global economy’s resilience in the face of energy stress and Middle East conflicts, supported by AI-related investments and favorable financial conditions.
