India’s growth remains resilient at an estimated 7.1 per cent for FY27, even as geopolitical tensions in the Middle East pose challenges to the broader Asia-Pacific region, according to a report by S&P Global on Wednesday. 

In its latest economic outlook, S&P Global has highlighted that India remains among the fastest-growing major economies, supported by strong domestic demand, steady exports, and a gradual recovery in private investment.

S&P has projected India’s GDP growth at 7.1 per cent for next fiscal, underlining sustained economic momentum despite global uncertainties.

The report also noted that Asia-Pacific growth continues to hold up, with India emerging as a key driver alongside other major economies.

Growth across the region (excluding China) is expected to improve to 4.5 per cent in 2026, aided by resilient domestic activity and strong performance in technology-linked sectors.

India’s economic outlook is supported by healthy consumption trends and improving investment activity, which are expected to offset external headwinds such as geopolitical tensions and trade uncertainties.

Meanwhile, the report also pointed out that China’s growth is also expected to slow down, with GDP projected at 4.4 per cent in 2026, as weak demand, a struggling property sector, and external uncertainties weigh on momentum.

While higher crude oil prices remain a concern globally, the agency pointed out that India’s strong services exports and diversified economic base are likely to help cushion the impact on external balances.

On the policy front, the Reserve Bank of India (RBI) is expected to maintain a stable interest rate environment, adopting a balanced and neutral stance to support growth while keeping inflation in check. “We expect the central bank to hold rates steady and maintain a neutral stance.”

In addition, inflation is projected to normalise to 4.3 per cent in FY27, remaining within a manageable range, even as global energy prices remain volatile.

The report also highlighted that Asia-Pacific economies, including India, are benefiting from strong demand for technology-related exports, particularly in sectors linked to artificial intelligence and semiconductors, which continue to drive trade momentum.