HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
Fitch Ratings raises India's GDP growth forecast to 6.9% for FY27
Sep-23-2026

Fitch Ratings has raised India's Gross Domestic Product (GDP) growth forecast for the current fiscal year 2026-27 (FY27) to 6.9 per cent from its earlier estimate of 6.4 per cent, citing strong economic growth rate of 7.8 per cent in the April-June quarter of FY27 (Q1FY27) and overall economic resilience despite the external shock from the US-Iran conflict.  

According to Fitch, India's economic momentum is likely to moderate over the remaining fiscal year, prompting the Reserve Bank of India (RBI) to increase interest rates by 25 bps to 5.5 per cent in its October monetary policy meeting. 

It said that PMI survey data have indicated slower expansion in both manufacturing and services, while below-normal monsoon rainfall is expected to weigh on agricultural output and rural demand. It said rising inflation could also squeeze real household incomes and consumer spending. It said private investment prospects look more buoyant, and it expects investment to rise by more than 10 per cent; non-food credit growth reached 19 per cent y-o-y in July.

  RELATED NEWS >>