Global rating agency Fitch Ratings on December 4 raised its forecast for India’s economic growth in the current financial year 2025-26 (FY26) to 7.4%, compared with 6.9% earlier. The upward revision reflects improved macroeconomic prospects amid robust domestic demand and stronger consumption following the recent GST reforms.

The upgrade comes days after official data showed India’s gross domestic product (GDP) grew at a six-quarter high of 8.2 per cent in the second quarter ended September 30, 2025 (Q2 FY26) amid robust growth in manufacturing and services.

Fitch said falling inflation gives the Reserve Bank of India (RBI) room for one more policy rate cut in December to 5.25 per cent, following 100 bp of cuts in 2025 so far. It added that GDP growth accelerated further in the July-Sept

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