S&P Raises India's Growth Forecast Amid Global Geopolitical Tensions

S&P Global Ratings has elevated India's GDP growth forecast to 6.5% for the current fiscal year, attributing it to lower crude prices, monetary easing, and stable monsoon patterns. It anticipates India to remain resilient despite global geopolitical tensions and fluctuations in energy markets, primarily due to maintained domestic demand.

S&P Global Ratings revised India's GDP growth forecast for the current fiscal year to 6.5%, crediting a combination of low crude prices, monetary easing, and a stable monsoon season. The agency predicts that ongoing geopolitical tensions will not heavily impact the rupee or inflation.

In a detailed analysis of the Asia Pacific economy, S&P cautioned about rising risks in the global economy from the Middle East conflict, noting that persistent oil price hikes could affect Asia-Pacific economies, particularly by slowing down global growth and putting pressure on net energy importers' current accounts.

Vishrut Rana, an economist with S&P Global Ratings, highlighted that India's strategic advantage is tied to energy prices, which, despite moderate increases, remain lower than the previous year, thus helping India manage current account outflows and domestic energy price pressures.

(With inputs from agencies.)