India’s GDP to grow at higher 6.9 pc in FY26: Fitch

Fitch Ratings has raised its forecast for India’s economic growth for the current fiscal year to 6.9% from 6.5% earlier, citing stronger-than-expected momentum in the June quarter driven by robust services activity and resilient consumption. Real GDP grew 7.8% year-on-year in the April-June quarter, accelerating from 7.4% in the previous three months and beating Fitch’s projection of 6.7%. Domestic demand will remain the key growth driver, supported by strong real income dynamics and looser financial conditions. Uncertainty around trade relations could dampen business sentiment and investment amid rising trade tensions with the United States, which recently imposed an additional 25% tariff on Indian imports, Fitch said, adding that it expects the rates to be negotiated lower. The agency expects growth to moderate in the second half of the fiscal year, slowing to 6.3% and 6.2% in the next two fiscals, according to a report.

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