S&P cuts India FY27 growth forecast to 6.6% as Iran war squeezes spending

Published on 6 May 2026

Debt to GDP seen rising as infrastructure faces squeeze

S&P Global Market Intelligence has cut India’s FY27 growth forecast to 6.6%, citing fallout from the Iran war. The report warns that geopolitical stress is tightening fiscal space, limiting capital expenditure and potentially constraining infrastructure spending. While medium-term strength may come from services, manufacturing, and AI, debt-to-GDP is expected to climb in the near term.

FY27 growth forecast lowered to 6.6% by S&P
Iran war pressures fiscal space and capital expenditure plans
Infrastructure spending could be constrained as priorities shift
Debt-to-GDP expected to rise despite medium-term drivers

#india growth #fiscal space #geopolitics #sp global #infrastructure

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S&P cuts India FY27 growth forecast to 6.6% as Iran war squeezes spending

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