11.09.202501:45:02UTC+00Fitch Upgrades India’s FY25–26 GDP Outlook to 6.9%

On Wednesday, Fitch Ratings adjusted its forecast for India's GDP growth for the fiscal year 2025–26, increasing it to 6.9% from the previously estimated 6.5%. This upward revision is attributed to robust domestic demand and impressive growth in the quarter ending June. During April to June, India's economy expanded by 7.8% compared to the same period last year, improving on the prior quarter's 7.4% growth and surpassing Fitch’s earlier estimate of 6.7% from its June Global Economic Outlook. Meanwhile, the United States has implemented an additional 25% tariff on imports from India, raising total duties on certain Indian products to 50%, effective from August 27. Fitch commented that while there may eventually be negotiations to reduce these tariffs, the ongoing trade tensions are likely to affect business sentiment and potentially hinder investment. The agency also highlighted the Indian government's implementation of the Goods and Services Tax (GST) reforms, effective from September 22, which are anticipated to moderately increase consumer spending through the remainder of this fiscal year and into the next.