S&P Global Projects 6.7% GDP Growth for India in FY25
Global analytics firm S&P Global forecasts India’s GDP to expand by 6.7% in the next fiscal year (2025-26), reinforcing its position as the fastest-growing major economy despite global headwinds. The projection highlights resilience in domestic demand, private investments, and policy-led growth.
Key Growth Drivers
- Strong Domestic Demand: Rising middle-class consumption and rural recovery underpin economic activity.
- Private Sector Investments: Boost in manufacturing (e.g., PLI schemes) and tech-driven sectors.
- Government Reforms: Infrastructure push (PM Gati Shakti) and ease of doing business improvements.
- Global Supply Chain Shift: India gains as firms diversify from China.
India vs. Global Peers
- Outpaces China’s 4.6% and aligns with IMF’s 6.5% forecast for India.
- More conservative than RBI’s 7% estimate but reflects cautious optimism.
Risks to Watch
- Geopolitical tensions disrupting trade.
- Erratic monsoons impacting agriculture (18% of GDP).
- Inflation from food/fuel volatility.
Sector-Specific Outlook
- Manufacturing: PLI schemes and infra projects to drive jobs.
- Services: IT, fintech, and e-commerce remain growth pillars.
- Agriculture: Dependent on monsoon but backed by MSP reforms.
Expert Insights
Economists urge focus on job creation, skill development, and tax/labor reforms to sustain growth. S&P notes that consistent policy execution is critical for long-term stability.
Conclusion
India’s 6.7% growth target is achievable with balanced reforms and global confidence. If maintained, it could fast-track the $5 trillion economy goal.
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