New Delhi: India Ratings & Research (Ind-Ra) on Wednesday trimmed India’s growth projection for the current fiscal to 6.3 per cent, citing uncertainties around US tariffs and weak investment climate.

Ind-Ra expects GDP in FY26 to grow 6.3 per cent y-o-y, 30bps lower than its earlier forecast of 6.6 per cent made in December 2024. The economy is facing both headwinds and tailwinds, it said in its mid-year economic outlook.

“Major headwinds are: i) uncertain global scenario from the unilateral tariff hikes by the US for all countries and ii) weaker-than-expected investment climate. The major tailwinds are: i) monetary easing, ii) faster-than-expected inflation decline, and iii) likely above-normal rainfall in 2025”, said Devendra Kumar Pant, Chief Economist and Head Public Finance, Ind-Ra. The Indian economy had grown at 6.5 per cent in 2024-25 (April 2024 to March 2025).