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India GDP Growth: This news is going to give relief on the Indian economy. Global ratings S&P has estimated the country’s GDP growth to be 6.5 percent during the financial year 2025-26. After this prediction, GDP growth has improved compared to last month. Earlier, the growth rate was reduced to 6.3 percent due to global uncertainties.
In the new Asia Pacific Economic Outalut report, Global Agency S&P said that the economy stands firmly despite global challenges due to strong domestic demand in the country. The main factor supporting GDP- the fall in crude oil prices, the expectation of normal monsoon, the possibility of cutting interest rates and concessions in income tax.
GDP will increase at high speed
According to the estimate of RBI, S&P has also expressed the possibility about a similar economy. The Reserve Bank of India for FY 2025-26 had expected the GDP growth rate to remain 6.5 percent.
Here, S&P report on American tariff also expressed concern and it was said that it could hurt investment and global trade. At the same time, the speed of the global economy can also slow down. In this report, referring to tension in the middle East, it has been said that American military action may worsen the situation. Along with this, if the price of crude oil remains at a higher price for a long time, then it can also have a bad effect on other economy like India dependent on energy imports.
Crude oil rapidly affects GDP
Significantly, India is dependent on ninety percent of its needs. Also, about fifty percent of natural gas is also ordered from outside. In such a situation, if the price of crude oil goes up, it will not only increase the trade deficit of an economy like India, but will also increase inflation. Its adverse effect can be seen on GDP.
