Fitch lifts India FY26 growth forecast to 7.4%
Fitch Ratings has revised India’s economic outlook upward, projecting faster growth over the next two financial years. The agency now expects India’s GDP to expand by 7.4% in FY26, supported by steady domestic demand, higher public investment, and improving business sentiment. For FY27, Fitch forecasts growth of 6.4%, signaling continued resilience even as global economic conditions remain uncertain. The revision reflects India’s strong macroeconomic fundamentals, sustained government capital expenditure, and expanding private sector activity. Fitch also highlighted the country’s stable financial system and moderating inflation as positive contributors to long-term growth. Although challenges such as weak external demand and potential global volatility persist, the agency believes India will remain one of the world’s fastest-growing major economies. The stronger outlook is expected to boost investor confidence and support economic planning for the coming years.
The Key points
- Fitch upgrades India’s GDP growth outlook for FY26 to 7.4%.
- FY27 growth forecast set at 6.4%.
- Higher domestic demand drives stronger projections.
- Government capital spending continues to support expansion.
- Private sector activity shows steady improvement.
- Inflation trends remain moderate, aiding stability.
- Financial system conditions stay broadly healthy.
- External trade demand remains a key challenge.
- Global economic uncertainty still poses risks.
- India expected to remain a leading fast-growing major economy.
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