Fitch Ratings sees India growing 7.5% in FY26

New Delhi: Fitch Ratings on Friday raised India’s GDP growth forecast for FY26 to 7.5 per cent, slightly higher than its earlier estimate of 7.4 per cent, citing strong domestic demand even as global uncertainties persist.

In its Global Economic Outlook – March 2026, the agency said consumer spending and investment will remain the key drivers of growth this fiscal year. It expects consumer spending to rise 8.6 per cent and investment 6.9 per cent in FY26. High-frequency indicators such as GST collections, manufacturing output, air travel and digital payments suggest steady economic momentum despite headwinds from slowing global trade. The report noted tentative signs of slowing activity in January and February, reflected in PMI survey data. Even so, the economy remains resilient and credit growth continues in double digits. Fitch expects growth to slow in the first half of FY27 as rising inflation constrains real incomes and dampens consumer spending.