Fitch raises growth forecast to 7.4%

FITCH RATINGS HAS raised India’s GDP growth forecast for FY26 to 7.4% from 6.9% estimated earlier, citing stronger-than-expected economic momentum and robust domestic demand.

- FE BUREAU

The upgrade follows the economy’s impressive 8.2% year-on-year expansion in the second quarter of FY26, an acceleration from 7.8% in Q1. Fitch noted that the gap between nominal and real GDP has narrowed significantly, with the GDP deflator rising just 0.5% from a year earlier, reflecting contained price pressures.