By Admin 
S & p global rating on india gdp: After the American high tariff was imposed on India, it was constantly feared that ambitious programs like ‘Make in India’ and various sectors may be affected. But the US rating agency has made it clear that Trump’s high tariff will not have any significant impact on India and the GDP will remain at a high speed.
S&P retained GDP estimate
S&P Global Rating maintained India’s GDP at 6.5 percent during the current financial year 2025-26 on Tuesday. The rating agency has described strong domestic demand and broadly favorable monsoon as its basis. S&P also said that the repo rate from the Reserve Bank of India (RBI) is expected to reduce the repo rate by 0.25 percent in the current financial year, as it has reduced inflation forecast to 3.2 percent. India’s GDP (GDP) growth rate was 7.8% in the April-June quarter.
The rating agency said in the statement, “We estimate that India’s GDP growth rate will remain stable at 6.5 percent in the current financial year (till 31 March 2026). The domestic demand will remain strong, which broadly will help rapidly in benign monsoon, income tax and GST cut and government investment rapidly.”
Inflation and monetary policy
The S&P Global Rating Agency said that the decrease in food inflation will help to control inflation in the current year. This will make scope for more adjustment in monetary policy. They estimate that RBI may cut the repo rate by 0.25 percent in the current financial year. The S&P report ‘Asia-Pacific Fourth Quarter 2025: A decrease in external pressure’ stated that the relatively flexible domestic demand in the entire region has reduced the impact of US import duty and global growth.
The agency reported that the impact of American charges on various Asian economies will depend on their export landscape and regional supply chains. He said, “Relative to our June perceptions on the US fee, China’s performance has been better than other Asian economies. The performance of South-East Asian emerging markets has been slightly poor. India has had a much worse impact than anticipated.”
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