Mumbai, Sept. 23 -- S&P Global Ratings on Tuesday reaffirmed its forecast for India's gross domestic product (GDP) growth at 6.5% in 2025-26 (FY26), citing robust domestic demand, higher investments, and tax reforms.

Alongside, S&P lowered its inflation estimate for FY26 to 3.2%, attributing it to a sharper-than-expected drop in food prices.

In June, the MPC reduced the repo rate by 50 bps to 5.5% and shifted its stance from accommodative to neutral, where it has remained since.

However, the report flagged Donald Trump's tariff measures as a drag on India's external outlook.

Higher US tariffs, S&P cautioned, will weigh on exports and cloud growth prospects due to uncertainty around their scope and enforcement.

Union Minister Ashwini ...