Fitch Ratings revised India’s FY26 growth outlook upward to 6.9% from 6.5%, citing robust momentum.
GDP expanded 7.8% in April–June, supported by resilient consumption and services output.
Retail inflation fell to just 1.6% in July, thanks to strong monsoon rains and falling f
ood prices.
Fitch expects moderation ahead, forecasting 6.3% and 6.2% growth for the following two years.
The rating agency sees scope for a 25-basis point RBI rate cut before year-end.
But it flagged external trade tensions as the biggest downside risk for investment flows.
Strong real GDP growth versus softer nominal numbers raises some doubts about sustainabil
ity.
Even so, the revised forecast strengthens India’s position as the fastest-growing major econo
my.
Investors are optimistic but cautious about whether momentum can last into 2026.
Structural reforms and external stability will determine if India can sustain near-7% growth.