Fitch Raises India’s FY26 Growth Outlook To 7.4%
Fitch Ratings has revised India’s FY26 growth forecast upward to 7.4 percent, an increase from its earlier estimate of 6.9 percent. The agency cited strong private consumption, improved demand conditions and the positive impact of ongoing GST reforms as key reasons for the upgrade.
Growth Expected To Moderate In FY27
Fitch projects that India’s growth will ease to 6.4 percent in FY27 as post-reform momentum stabilises and certain demand components cool. The agency noted that while overall outlook remains positive, the pace of expansion is likely to return closer to long-term trends.
Q2 GDP Performance Boosts Confidence
The revision comes after India reported 8.2 percent real GDP growth in the second quarter of FY26, signalling resilient domestic demand despite global economic uncertainty. Analysts say this performance strengthens confidence in India’s medium-term growth trajectory.
Monetary Policy Easing Seen As Possible
Fitch also highlighted that softening inflation and strong spending patterns could allow room for the Reserve Bank of India to consider rate cuts in the coming months. Such easing, if undertaken, may support private investment and help sustain growth beyond FY26.
