New Delhi: International rating agency, Fitch has revised its GDP growth forecast for India. The agency, slashed the FY25 projection by 10 basis points to 6.20%. Additionally, the FY26 GDP growth forecast has been cut by 10 basis points to 6.40%. For FY27, Fitch has pegged India’s GDP growth forecast at 6.30%.
Consumer price index (CPI)-based inflation is expected to be 3.9% by the end of this calendar year, the agency said, a notch below its earlier forecast of 4%. Reserve Bank of India’s (RBI) policy interest rate is expected to reach 5.5% by this year end.
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Policy makers in India are counting on a 6.3-6.8% growth this financial year on the basis of expected above-normal monsoon and minimal impact of the tariff war on the economy.The government expects the economy to expand at 6.3-6.8% this fiscal, while the RBI expects a 6.5% growth. The central bank expects CPI inflation to remain at 4% this fiscal, which is its target.
Earlier on Wednesday, the Reserve Bank of India’s Monetary Policy Committee India’s GDP forecast for the fiscal year starting April 1, lowering it to 6.5% from the previously projected 6.7%. In the previous central bank policy meeting, which was also the first under the new RBI Governor Sanjay Malhotra, the MPC had estimated India’s FY26 GDP growth at around 6.7%.
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