S&P Global Raises India's GDP Forecast Amid Global Economic Turbulence

S&P Global Ratings has adjusted India's GDP growth prediction for the current fiscal year, elevating it to 6.5%. This outlook assumes conditions such as a normal monsoon, reduced crude oil prices, and monetary easing will prevail.

Amid rising unrest in the Middle East, S&P has cautioned that sustained significant hikes in oil prices could detrimentally affect Asia-Pacific's economy by slowing global growth and straining net energy importers' current accounts. Nevertheless, current global energy markets appear stable enough to forestall long-term adverse impacts on oil prices.

The organization noted that India heavily relies on imports for its crude oil and natural gas needs, with 90% of crude oil and roughly half its natural gas sourced from abroad. However, India's economic resilience, driven by strong domestic demand, makes it less vulnerable to international trade instabilities.

(With inputs from agencies.)