India’s GDP to expand by 6.7% in FY25: S&P Global

New Delhi: An S&P Global Ratings report on Thursday projected India’s GDP to expand by 6.7 per cent in fiscal 2025 (year ending March) -- the fastest growing economy in the Asia-Pacific region.Stressing that India’s low US exposure reduces trade tariff risks, the report mentioned that domestic focus and strong fundamentals bolster Indian companies’ defences.

“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 help absorb such pressures. Firms in the country also benefit from a growing economy, supported by strong infrastructure and consumer spending,” the report emphasised.

It further stated that Indian companies are protected by robust growth and strengthened credit quality and most will fund onshore given better access to deepening liquidity onshore.Sectors with a high dependence on US markets are mainly IT services, chemicals, and autos. Services are not subject to tariffs, but in the auto sector, some firms, such as Tata Motors Ltd., via Jaguar Land Rover Automotive PLC (JLR), have relatively high exposure to the US.