India’s financial system is predicted to stay firmly on a powerful progress path over the following two years, with S&P World Scores projecting 6.5 per cent growth within the present fiscal and 6.7 per cent within the subsequent. The company stated a mixture of tax cuts and financial coverage easing will bolster consumption-led progress regardless of the drag from larger US tariffs.As cited by information company PTI, S&P famous that India’s actual GDP grew 7.8 per cent in April–June, the quickest tempo in 5 quarters. Official GDP numbers for July–September will probably be launched on November 28. “We anticipate that India’s GDP will develop by 6.5 per cent in fiscal 12 months 2026… and 6.7 per cent in fiscal 2027, with dangers evenly balanced,” S&P stated in its Financial Outlook Asia-Pacific report, including that robust home consumption continues to assist momentum.The RBI has forecast 6.8 per cent GDP progress for the present fiscal, in comparison with 6.5 per cent final 12 months, PTI reported.In accordance with S&P, securing a commerce settlement with the US would assist scale back uncertainty and raise confidence, significantly for labour-intensive sectors. It added that lowered GST charges, mixed with income-tax cuts and rate of interest reductions this 12 months, will push consumption to play a bigger function in progress than funding in FY26 and FY27.The federal government’s Finances for FY26 raised the income-tax rebate restrict to Rs 12 lakh from Rs 7 lakh, offering Rs 1 lakh crore in reduction to the center class. In June, the RBI lower coverage charges by 50 foundation factors to a three-year low of 5.5 per cent. Moreover, GST charges on about 375 objects had been slashed from September 22, making mass-consumption items cheaper, PTI famous.S&P stated elevated US tariffs proceed to weigh on India’s export-oriented manufacturing, although there are early indicators Washington might decrease duties on some Indian merchandise. The company added that the US’s revised commerce coverage method is forcing governments and corporations to give attention to securing exemptions, diverting sources from productivity-enhancing efforts.