Fitch Ratings has raised India’s FY26 growth forecast to 7.4%, up from 6.9% earlier, on stronger-than-expected private consumption. The upgrade follows India’s 8.2% GDP expansion in the second quarter of FY26—the fastest in six quarters. Fitch says the growth reflects solid real income gains, buoyant consumer sentiment and the impact of recent GST reforms.

The agency expects growth to moderate to 6.4% in FY27 as the economy moves closer to its potential, with domestic demand, especially consumer spending, remaining the primary engine. Public investment is seen slowing, while private investment is expected to pick up in the latter half of FY27 as financial conditions ease. Growth is projected to soften further to 6.2% in FY28 as rising imports begin to weigh on the expansion.

Fitch also f

See Full Page