S&P gave good news for Indian economy! GDP growth estimates increased, told- the reason behind this
Indian economy Good news has come for. Rating agency S&P has increased India’s GDP growth estimate. The agency increased the estimate of India’s GDP (GDP) in the current financial year 2025-26 in view of normal monsoon, low prices of crude oil and monetary softening. S&P reduced India’s growth estimates to 6.3 percent last month, citing global uncertainties and US fees shaking. The rating agency said in the Asia Pacific Economic scenario released on Tuesday that we expect India’s GDP growth to be stable at 6.5 percent in FY 2025-26 (ending on 31 March 2026).
Stress in West Asia increased global risk
The rating agency S&P has warned that the instability released in West Asia may have increased risk for the global economy. If oil prices persist for a long time, it will affect global growth, especially for pure energy importers. S&P said that expensive oil may cause three-way pressure on the economies of the Asia-Pacific region-the current account will increase, the price level will go up and the production cost will also increase. This condition can cause economic lethargy in the region. However, S&P believes that currently the supply in the global energy market is sufficient. Because of this, oil prices are less likely to raise long -term rapid. The current situation indicates that there is no possibility of permanent pressure on prices.
There will be no much pressure on money, inflation
S&P said that the current geopolitical stress is not expected to be “pressure” on money or inflation, as global energy prices are lower than last year, which will limit the current account withdrawal and domestic energy price. S&P global rating economist Vishrut Rana said that a major relief factor for India is that energy prices are still lower than the previous year. A year ago, the price of Brent crude oil was around $ 85 per barrel and the current prices are still low. Rana said, this will help in controlling both funds withdrawal and domestic energy price pressure from the current account. Energy prices may increase slightly, but the increase in food prices will have more impact on inflation. Overall, we do not see any significant pressure on the Indian rupee or inflation.
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