Even expensive crude oil will not be able to stop India’s growth, S&P Global’s big claim

According to the report of global rating agency S&P Global, India’s economy can grow at the rate of 6.3 percent even if the average price of crude oil reaches $ 130 per barrel in the financial year 2026-27. According to a PTI news, a report has said that despite high oil prices, India’s economic condition will remain strong and it will have limited impact on the growth rate i.e. GDP. The main reasons for this have been said to be strong domestic demand in the country, increasing investment activities and continuous economic reforms.

India’s economic condition will remain better than many other countries

According to the news, S&P believes that these factors will support economic growth even amid the pressure of higher energy prices. However, the report also warned that a sharp rise in crude oil prices could increase inflation and put pressure on the current account deficit. Despite this, India’s economic condition is expected to remain better than many other countries.

These rating agencies have also shown confidence in India

Asian Development Bank (ADB) has recently estimated that India’s GDP growth rate will remain strong at 6.9 percent in the current financial year, while it may increase to 7.3 percent in the next financial year. According to the bank, this growth will be mainly supported by strong domestic demand, easy financial conditions and reduced tariffs by the US on Indian goods.

At the same time, the World Bank has also marginally increased India’s growth estimate to 6.6 percent for the financial year 2026-27. However, the bank said GST rate cuts will boost consumer demand in the initial months, but risks arising from the Middle East crisis could weigh on growth. It is also noted that this estimate for FY27 is different from the expectations of other global institutions. The Reserve Bank of India has projected a growth of 6.9 percent, OECD of 6.1 percent and Moody’s Ratings of 6 percent.