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S&P Global Projects India's FY27 Growth at 7% Amid Global Uncertainty
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Moneycontrol•30-09-2026, 14:43
S&P Global Projects India's FY27 Growth at 7% Amid Global Uncertainty
- •S&P Global forecasts India's economy to grow by 7% in FY27, a moderation from 7.8% in the previous fiscal year, due to global uncertainty and energy supply disruptions.
- •India has shown resilience against high US tariffs and an uncertain global environment, with domestic drivers helping the economy outperform expectations in FY26.
- •Yann Le Pallec, President of S&P Global Ratings, emphasized that India's next growth phase relies on continued physical infrastructure development, competitive federalism, deeper capital markets, and stronger financial intermediation.
- •A key risk identified is India's exposure to disruptions in the Strait of Hormuz, which has led to significant reductions in crude, LPG, and LNG supplies.
- •The report suggests the digital rupee could become a "fourth layer" of India's digital public infrastructure, allowing programmable rules to be embedded directly into money.
Key Questions Answered
S&P Global projects that India's economy will grow by around 7 percent in FY27, moderating from 7.8 percent in the previous financial year due to global uncertainty and energy supply disruptions.
S&P Global flagged India's exposure to disruptions in the Strait of Hormuz as a major vulnerability, noting that the disruption caused reductions of 20 percent in crude supplies, 12 percent in LPG, and 16 percent in LNG.
S&P Global noted that the digital rupee could emerge as a fourth layer of India's digital public infrastructure by enabling programmable rules to be embedded directly into money.
