Ahmedabad: S&P Global Ratings have reduced India’s economic growth rate for the current financial year by 0.2 percent to 6.3 percent. The reason for this is being stated to be uncertainty in America’s tariff policy and its negative impact on the Indian economy. Changes in American trade policy will slow down world development.
According to the report, China’s growth rate in the major economies of the Asia-Pacific region is estimated to be reduced by 0.7 percent to 3.5 percent in 2025 and 3 percent in 2026. For India, S&P has estimated to be 6.3 percent in GDP in 2025-26 and 6.5 percent in 2026-27. In March, the GDP growth estimate for FY 26 was reduced from 6.7 percent to 6.5 percent.
S&P had estimated that the Indian rupee-American dollar exchange rate could reach 88 by the end of 2025, which would be 86.64 in 2024. After the announcement of the US tariff policy, there is a lot of ups and downs in the rupee and currently it is hovering around 84.
The report states that the US economy will grow at a rate of 1.5 percent in 2025 and 1.7 percent in 2026. The American tariff policy can be divided into three parts. The trade policy with China will vary due to geopolitical rivalry.
S&P warned that if the impact of the tariff policy increases, the global economy and the role of America could be uncertain.
