S&P Global Ratings has revised India’s GDP growth forecast for FY27 upward to 7.1%, driven by strong private consumption, investment, and export demand.

However, the agency cautioned that ongoing Middle East geopolitical tensions could put pressure on the fiscal position, particularly through higher energy prices.

S&P also highlighted risks from global uncertainties, including trade disruptions and commodity price volatility, which may impact capital flows and economic stability.

While fuel prices may rise if crude oil remains elevated, the agency does not expect a complete pass-through to consumers.