India’s GDP to expand by 6.7 pc in FY25, fastest growing in Asia-Pacific: S&P Global
According to an S&P Global Ratings report released on Thursday, India's GDP is projected to grow by 6.7% in fiscal year 2025, making it the fastest-growing economy in the Asia-Pacific region. The report highlights India's strong fundamentals, including its robust domestic focus and resilience in the face of global trade risks.

New Delhi: According to an S&P Global Ratings report released on Thursday, is projected to grow by 6.7% in fiscal year 2025, making it the fastest-growing economy in the Asia-Pacific region. The report highlights India’s strong fundamentals, including its robust domestic focus and resilience in the face of global trade risks.
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India’s Economic Outlook: Strong Fundamentals and Low Exposure to US Trade Risks
S&P Global emphasized that India’s low exposure to the US economy shields it from trade tariff risks, particularly in sectors reliant on US markets like IT services, chemicals, and automotive industries. Despite this, Indian companies remain well-positioned to weather temporary earnings slowdowns thanks to substantial improvements in operating and financial strength in recent years.
“Most of our rated Indian firms can withstand temporary earnings slowdowns. Improvements in operating and financial strength over the last few years provide more cushion to absorb such pressures,” the report stated.
Sectors Expected to Perform Well in FY25
The report also forecasted a steady economic expansion in India, supported by robust consumer spending and strong infrastructure development. Indian companies are projected to benefit from this growth, with sectors such as steel, chemicals, and airports expected to see above-average growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
In particular, the steel sector is anticipated to benefit from a modest decline in input prices and increased production volumes following capacity additions. Similarly, the chemicals sector is expected to recover following a downturn in 2024.
India’s Renewable Energy Ambitions
S&P Global highlighted India’s ambitious plans to expand its renewable energy capacity to 500 gigawatts (GW) by 2032, up from approximately 200 GW currently. The report also noted significant investments in the country’s transmission sector, including Power Grid Corp. of India Ltd., which could double its capital expenditure to over INR 300 billion per year in the coming years.
Indian Firms Benefiting from Strong Domestic Liquidity
As India continues to see economic growth, most Indian firms are expected to fund their operations domestically, with better access to deepening liquidity onshore. While offshore financing options, such as dollar bonds, remain available, Indian firms will likely rely more on onshore funding due to its lower costs.
Also Read: Indian Economy Demonstrates Resilience Amid Rising Global Economic Uncertainty: RBI Bulletin
Positive Outlook for FY25
S&P Global’s report anticipates that the median revenue and EBITDA growth of its rated Indian firms will reach nearly 8% in fiscal year 2025, marking the fifth consecutive year of growth. This growth is expected to be supported by continued economic expansion and favorable credit conditions.
In conclusion, India’s strong economic growth, combined with its ability to navigate global trade risks and support for key sectors like steel and chemicals, positions the country for sustained prosperity in FY25.