Fitch Ratings on Thursday raised India’s GDP growth forecast for the current fiscal year to 7.4 per cent, up from 6.9 per cent, ascribing it to increased consumer spending and improved sentiment boosted by GST reforms.

Fitch Ratings 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 bps of cuts in 2025 so far.

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“Growth will ease over the remainder of the financial year 2025-26 (to end-March), but we have raised our full-year growth forecast to 7.4 per cent, from 6.9 per cent in September,” Fitch said in its Global Economic Outlook report for December.

“We expect falling inflation should give the RBI room for one more policy rate cut in December to 5.25 per cent, following 100 bp of cuts

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