New Delhi, Sept. 23 -- S&P Global Ratings has raised its forecast for India's real GDP growth in the fiscal year ending March 31, 2027, to 7% from 6.6% earlier, citing stronger-than-expected growth in the June quarter.

The ratings agency also expects the Reserve Bank of India (RBI) to raise its policy rate by 25 basis points during the fiscal.

S&P Global Ratings said robust industrial activity, healthy consumption, strong goods exports and accelerating government investment had pushed growth above its earlier expectations in the June quarter.

"We expect the balance of considerations to shift toward higher interest rates. Factors supporting this shift include solid growth, persistent inflationary pressures, an unresolved conflict in Wes...