Fitch Raises India's GDP Growth Forecast for FY26 to 7.5%, Projects Moderate Slowdown in FY27

Fitch Ratings has raised India's GDP growth forecast for fiscal year 2025-26 to 7.5%, up from 7.4%, driven primarily by resilient domestic demand with consumer spending and investment expected to grow by 8.6% and 6.9%, respectively. Despite tentative signs of slowing activity in early 2026 and rising inflation constraining incomes, the economy remains robust. Fitch projects growth to moderate to 6.7% in FY27 amid inflationary pressures and expects interest rates to remain steady. Global uncertainties, including oil price volatility linked to the Iran conflict, pose risks to growth and inflation outlooks.