Fitch raises India's FY26 growth forecast to 6.9%
Fitch Ratings just bumped up its forecast for India's economic growth in 2025-26 (FY26) to 6.9%, from an earlier 6.5%.
This brighter outlook comes after a strong start to the year, with GDP growing by 7.8% in the first quarter—mainly thanks to a big boost in services and increased private and public consumption spending.
Fitch highlights risks, but sees positive trends
The surge was led by a 9.3% jump in services and a solid 7% rise in private consumption between April and June.
Still, Fitch points out some risks ahead, like new US tariffs on Indian imports that kicked in last month and could affect trade.
On the plus side, business activity is at its highest in years, and recent GST reforms might give consumer spending another nudge—though growth is expected to cool off slightly after FY26.