New Delhi, Sept. 17 -- India's vast domestic market is providing a crucial cushion against global turbulence, allowing the country to retain its position as the world's fastest-growing major economy, according to a new study by ratings agency S&P Global.

The report, India Forward: Shifting Horizons, projects the economy will expand 6.5% in 2025-26, even as shifting trade policies and volatile financial markets weigh on global growth.

S&P notes that while external shocks have tested India in the past, they have not derailed its long-term trajectory.

"A favourable monsoon season, low crude oil prices and reduced interest rates will support Indian growth; however, downside risks are on the horizon. The direct and indirect impacts of tarif...