India's FY27 growth outlook revised to 6.5‑6.6% amid energy stress and global headwinds

The International Monetary Fund (IMF) maintained its projection that India's economy will expand by 6.5% in fiscal year 2026‑27, citing strong domestic demand, the recent reduction of U.S. tariffs on Indian goods and momentum from a robust 2025‑26 growth run. IMF officials noted that despite the war in West Asia and higher global energy prices, India remains a key driver of worldwide growth.

S&P Global Ratings forecasts a slightly slower 6.6% growth for FY27, warning that energy‑price stress, an expected below‑average monsoon linked to El Niño, and a slowdown in global growth could dampen the outlook. The agency highlighted rising fuel and fertilizer costs, higher consumer inflation and the likelihood of a policy‑rate hike later in the fiscal year. Both organisations see India’s performance as pivotal for the regional economy but emphasize differing risk factors.