New Delhi, March 25 (IANS). Despite rising geopolitical tensions in the Middle East, India’s economic growth will remain strong and GDP growth is expected to be 7.1 percent in the financial year 2026-27. This was said in a report by S&P Global released on Wednesday.
In its latest economic report, S&P Global said India will continue to be among the world’s fastest growing large economies. The main reasons for this are strong domestic demand, stable exports and gradual increase in private investment.
According to the report, India’s GDP growth is likely to be 7.1 percent in the next financial year, which shows that the country’s economic momentum remains strong despite global uncertainties.
The report also said that the economy of the Asia-Pacific region also remains better and India is playing a major role in it. Excluding China, growth in the region could reach 4.5 percent in 2026, driven by strong domestic activity and good performance by the technology sector.
India’s economy is being supported by strong consumption and increasing investment, which may reduce the impact of external challenges such as geopolitical tensions and trade-related uncertainties.
At the same time, the report says that China’s economic growth may slow down and its GDP growth is estimated to be 4.4 percent in 2026. The reasons for this are weak demand, problems in the property sector and external uncertainties.
According to the report, rising crude oil prices are a matter of concern for the world, but this impact can be handled to a great extent due to India’s strong service sector exports and diversified economy.
At the policy level, the Reserve Bank of India (RBI) is expected to keep interest rates stable and adopt a balanced policy, which will support growth and keep inflation under control.
The report said inflation could be around 4.3 percent in fiscal year 2027, which is considered a balanced level, even if global energy prices remain volatile.
Additionally, Asia-Pacific countries are also benefiting from technology-related exports, especially in the artificial intelligence and semiconductor sectors, which are boosting trade and economic activity.
–IANS
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