India’s GDP to grow 6.7% in FY25: S&P

New Delhi

India’s economy is set to expand by 6.7% in the fiscal year 2025, making it the fastest-growing economy in the Asia-Pacific region, according to a report by S&P Global Ratings. The report highlights India's strong domestic focus and economic fundamentals as key factors in its resilience.

S&P noted that most Indian companies can withstand temporary slowdowns due to improvements in financial strength. With a deepening domestic liquidity market, firms are likely to fund operations onshore rather than offshore. Industries such as IT services, chemicals, and autos have high exposure to the US, but India’s low dependency on US trade reduces tariff risks.

The report also pointed to India's ambitious renewable energy expansion plan, aiming to increase capacity from 200 GW to 500 GW by 2032. Investments in power transmission are also expected to rise, with Power Grid Corporation of India Ltd. set to double capital expenditure to over ₹300 billion annually.

For fiscal 2025, median revenue and EBITDA growth for rated Indian firms is projected at 8%, marking the fifth consecutive year of expansion. The steel, chemicals, and airport sectors are expected to show above-average growth, with steel producers benefiting from increased volumes despite stable product prices.

Indian companies are likely to continue funding through domestic markets due to lower costs, while offshore funding remains a selective option. S&P emphasized that India’s economic growth and improved credit conditions reinforce corporate resilience, further strengthening its position as a major global economy.