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Fitch raises India's FY26 GDP growth projection to 7.4% from 6.9%

07 Dec '25

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Fitch raises India's FY26 GDP growth projection to 7.4% from 6.9%

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Fitch Ratings recently revised India's GDP growth forecast for FY26 to 7.4 per cent from 6.9 per cent earlier.
Private consumer spending is the main driver of growth in the country this fiscal, “supported by strong real income dynamics, increased consumer sentiment, and the impact of recently implemented goods and services tax reforms,” it said.
It expects India's FY27 growth to ease to 6.4 per cent.

Fitch Ratings recently revised India’s gross domestic product (GDP) growth forecast for fiscal 2025-26 (FY26) to 7.4 per cent from 6.9 per cent earlier.

Private consumer spending is the main driver of growth in the country this fiscal, “supported by strong real income dynamics, increased consumer sentiment, and the impact of recently implemented goods and services tax reforms,” the rating agency said.

Fitch expects India’s FY27 growth to ease to 6.4 per cent, with domestic demand remaining the key driver. Public investment growth is likely to moderate, while private investment should pick up in the second half of FY27, it noted.

India’s real GDP growth surged by 8.2 per cent during the July-September quarter of FY26.

Fitch projects India FY26 inflation to average at 1.5 per cent. The consumer price index-based inflation fell to 0.3 per cent in October.

The rating agency also expects the rupee to strengthen next year to around 87 per US dollar.

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