Fitch Upgrades India's GDP Forecast Amid Robust Domestic Demand

Fitch Ratings has marginally increased India's GDP growth forecast to 7.5% for the current fiscal year, citing strong domestic demand as the main driver. The growth for the next fiscal year 2026-27 is also revised upwards to 6.7%. Despite global uncertainties, India's economy shows resilience.

Fitch Ratings has adjusted India's GDP growth forecast to 7.5% for the current fiscal year from its previous estimate of 7.4%, with domestic demand playing a crucial role in this increase. This announcement came as part of the ratings agency's Global Economic Outlook report for March 2026.

For the fiscal year 2026-27, Fitch has revised its growth estimate upward to 6.7%, from December's projection of 6.4%. The report anticipates world GDP growth to hit 2.6% in 2026, assuming energy prices remain stable despite geopolitical tensions in Iran.

Although there are indications of slowing economic activity early in the year, India's economy remains strong with double-digit credit growth. Consumer spending and investment are set to drive growth, projected at 8.6% and 6.9% respectively. Nonetheless, rising inflation could potentially impact real income and consumer spending in the first half of FY 2026-27.

(With inputs from agencies.)