New Delhi: Global rating agency S&P Global Ratings on Tuesday retained India’s GDP growth forecast at 6.5 per cent in the current fiscal, citing strong domestic demand amid a largely benign monsoon. “We expect a 25 bps rate cut by the RBI this fiscal as it revised its inflation forecast down to 3.2 per cent for this fiscal year,” S&P said. As India’s GDP grew at 7.8 per cent in the April-June quarter, S&P said in its Economic Outlook Asia-Pacific Q4 2025 that a sharper-than-expected decrease in food inflation will help keep inflation low in the current year. “We forecast India's GDP growth to hold steady at 6.5 per cent this fiscal year (year ending March 31, 2026). S&P further said that across the region, relatively resilient domestic demand should dampen the impact from stronger external headwinds following the increase in US import tariffs and slower global growth.