Fitch Ratings on Thursday revised India’s GDP growth forecast for FY26 to 7.4%, up from its earlier estimate of 6.9%, citing strong domestic demand and the positive impact of recent tax reforms.

The global rating agency said private consumption remains the primary engine of growth this fiscal year, supported by “strong real income dynamics, improved consumer sentiment, and the benefits of goods and services tax reforms.” It added that robust household spending has kept economic momentum firm despite external challenges.

For FY27, Fitch expects growth to moderate to 6.4%, with domestic demand continuing to drive the economy. Public investment is likely to soften, while private investment is expected to strengthen in the second half of FY27.

India’s economy expanded by 8.2% in the July–Se

See Full Page