India's economy is on track for 7% growth in FY27, says Fitch Group

Business Jan 12, 2026

India's economy is expected to grow by 7% in FY27, thanks to recent policy changes that make investing and spending easier.
Updates to GST and personal income tax are helping reduce the tax load for households, while the Reserve Bank of India's interest rate cuts are set to give growth an extra push.

What's driving this momentum?

BMI (part of Fitch) has bumped up its GDP forecast after seeing strong numbers—India grew by 7.8% and 8.2% in the first two quarters of FY2025/26.
New labor laws and allowing full foreign ownership in insurance are opening more doors for investment.
Plus, rising exports to the US add even more optimism about India's economic future.