Kathmandu. Global rating agency, S&P Global Ratings, on Tuesday lowered India’s gross domestic product (GDP) growth forecast to 6.5 percent for the coming fiscal year. This will see economies in the Asia-Pacific region face a contraction in economic growth due to rising US tariffs and pressures from a slowdown in globalisation.
In its Economic Outlook for Asia-Pacific (APAC) report, S&P said that despite these external stresses, it expects domestic demand to remain robust in most emerging-market economies.
“We expect India’s gross domestic product to grow by 6.5 per cent in the fiscal year ending March 31, 2026. Our forecast is similar to the previous fiscal year’s result, but lower than our earlier forecast of 6.7 per cent,” S&P said in the report. The forecast predicts a normal monsoon and a slowdown in commodity prices, especially crude oil.
A global credit rating agency expects central banks in the Asia Pacific region to continue cutting interest rates throughout the year.
