Fitch Upgrades India’s FY25–26 GDP Outlook to 6.9%

Fitch Ratings on Wednesday revised India’s GDP growth forecast for FY2025–26 to 6.9%, up from its earlier estimate of 6.5%, citing strong domestic demand and robust growth in the June quarter. India’s economy grew by 7.8% yoy in the April–June quarter, up from 7.4% in the previous quarter — faster than Fitch’s earlier projection of 6.7% in its June Global Economic Outlook. The US imposed an additional 25% tariff on imports from India, bringing total duties on certain Indian goods to 50%, effective August 27. “We expect this will eventually be negotiated lower, but the uncertainty around trade relations will dampen business sentiment and potentially investment,” Fitch said in a statement. The agency also noted that the Indian government has adopted Goods and Services Tax (GST) reforms, effective September 22, which are expected to modestly boost consumer spending over the remainder of this fiscal year and into the next.