India’s FY26 Growth Takes Another Hit as S&P Downgrades Forecast Amid U.S. Tariff Jitters

S&P Global Ratings has slashed India’s GDP growth projection for FY26 to 6.3% from 6.5%, citing uncertainties stemming from U.S. tariff policies under President Donald Trump.

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The U.S.’s reciprocal tariffs, announced by Trump, are creating jitters in India’s export-driven sectors like gems, jewelry, textiles, and medical devices.

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Alongside S&P, the IMF, World Bank, and RBI have also lowered India’s FY26 growth forecasts to 6.2%, 6.3%, and 6.5%, respectively.

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Sensex, Nifty stay resilient amid U.S. tariff fears, buoyed by hopes of a U.S.-India trade deal. Experts urge anti-dumping policies and diversified trade to counter risks.

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