Fitch Ratings Boosts India's Growth Forecast to 7.2% Amid Recovery in Consumer Spending

Fitch Ratings has revised India's growth forecast for the current fiscal year to 7.2%, citing a recovery in consumer spending and increased investment. The forecast aligns with the Reserve Bank of India's projections. Growth rates for fiscal years 2025-26 and 2026-27 are expected to be 6.5% and 6.2%, respectively.

In a recent update, Fitch Ratings has significantly revised India's growth forecast for the ongoing fiscal year to 7.2%, up from the previous estimate of 7% made in March. The upward revision is primarily attributed to a recovery in consumer spending and an uptick in investments.

Fitch's projections align closely with those made by the Reserve Bank of India (RBI), which also forecast a 7.2% growth for the current fiscal year. According to Fitch, this growth will be underpinned by improving rural demand and stabilizing inflation rates.

Looking ahead, the rating agency has projected growth rates of 6.5% and 6.2% for the fiscal years 2025-26 and 2026-27, respectively. Despite some headwinds like recent heatwaves, the outlook remains optimistic owing to strong consumer confidence and continued investment.

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