New Delhi: India’s economy is set to experience robust growth, with GDP projected to expand at an annual rate of 6.5-7% from 2025 to 2027, according to a report by S&P Global Ratings.
This positive outlook is driven by significant infrastructure investments and strong consumer spending, which are expected to bolster the country’s economic momentum.
The report highlights that the sustained infrastructure spending will play a crucial role in driving economic growth. Projects aimed at improving transportation, energy, and urban infrastructure are anticipated to create numerous job opportunities and stimulate economic activity across various sectors. Additionally, rising consumer demand is expected to further fuel growth, supported by increasing disposable incomes and a growing middle class.
S&P Global also noted that the favorable economic conditions will enhance the asset quality of Indian banks. Improved banking practices, including tighter underwriting standards and better risk management, are projected to reduce the proportion of non-performing loans to around 3% by March 2025. This improvement in asset quality is expected to strengthen the resilience of India’s financial institutions.
The report underscores the importance of structural reforms and sound economic policies in sustaining this growth trajectory. While external uncertainties may pose challenges, the overall outlook for India’s economy remains positive, with infrastructure and consumption acting as key pillars of growth.
This optimistic projection aligns with the Reserve Bank of India’s forecast, which anticipates a GDP growth rate of 7.2% for the current fiscal year. The continued focus on infrastructure development and consumer spending is expected to drive India’s economic expansion and support the country’s long-term growth prospects.
