New Delhi, Dec 4 || Driven by robust domestic demand and tax reforms, Fitch Ratings on Thursday revised India’s GDP growth forecast for FY26 to 7.4 per cent, from 6.9 per cent projected earlier.
The global rating agency said that 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”.
For FY27, Fitch expects India’s growth to ease to 6.4 per cent with domestic demand remaining the key driver. According to the global rating agency, public investment growth is likely to moderate, while private investment should pick up in the second half of FY27.
India’s real GDP growth surged by 8.2 per cent during the July-September quarter of 2025-26.
According to Fitch, the growth comes despite India facing one of the highest effective tariff rates on its exports to the US of around 35 per cent, and an India-US trade deal would “boost external demand”.