India Poised for Sustained High Growth, Says S&P Global; GDP Expected to Rise 6.8% Annually
New Delhi, Aug 14 (TheTrendingPeople.com) – India remains one of the world’s best-performing economies, with GDP projected to grow at 6.8% annually over the next three years, according to S&P Global. The global ratings agency credited strong infrastructure investment, fiscal consolidation, and stable inflation for sustaining the country’s growth momentum amid a global economic slowdown.
Growth Outlook Remains Strong
In its latest economic note, S&P Global forecast India’s real GDP growth at 6.5% in 2025, a figure that stands out among emerging market peers struggling with weaker economic activity. The agency said growth dynamics are expected to continue in the medium term, underpinned by sound economic fundamentals.
“Robust economic expansion is having a constructive effect on India’s credit metrics, and we expect sound economic fundamentals to underpin growth momentum over the next two to three years,” the report stated.
Fiscal Consolidation and Infrastructure Push
S&P highlighted the government’s political commitment to fiscal consolidation, aiming for sustainable public finances while maintaining a strong infrastructure drive.
Over the past decade, the share of capital expenditure (capex) in India’s GDP has risen significantly. In fiscal year 2026, the Union government’s capex is projected to reach ₹11.2 trillion, equivalent to 3.1% of GDP — up from just 2% a decade ago.
When combined with state-level capital spending, total public investment in infrastructure is estimated at 5.5% of GDP, a level that S&P notes is on par or higher than sovereign peers.
“We believe the improvements in infrastructure and connectivity in India will remove chokepoints, which are hindering long-term economic growth,” the agency said.
Stable Inflation and Monetary Policy Gains
S&P Global also praised India’s monetary policy reforms, particularly the adoption of inflation targeting. This framework, it noted, has “anchored inflationary expectations” far better than in the past.
Between 2008 and 2014, India frequently experienced double-digit inflation. In contrast, over the past three years, consumer price index (CPI) growth has averaged 5.5%, staying largely within the RBI’s 2%–6% target range despite global price volatility.
The agency attributed this stability to more effective monetary management, a deep domestic capital market, and improved policy coordination.
Global Context: India Outperforms Peers
The forecast comes at a time when many emerging markets are grappling with sluggish growth, currency pressures, and high inflation. S&P’s outlook positions India as a standout performer, benefiting from:
- Sustained infrastructure investment
- Strong domestic consumption
- Political commitment to fiscal discipline
- Monetary stability despite external shocks
These factors, S&P suggested, create a more stable and supportive environment for continued expansion.
Final Thoughts from The Trending People
S&P Global’s optimistic outlook reinforces India’s position as a leading growth engine in the global economy. With a clear focus on fiscal consolidation, infrastructure expansion, and stable inflation, India appears well-positioned to maintain its momentum even amid global headwinds. The coming years could see the nation not only sustain high growth rates but also improve the quality of that growth — ensuring it is both inclusive and resilient.