Fitch raises India’s growth forecast to 6.9% on strong Q2 momentum

Published 10/09/2025, 10:10
Fitch raises India’s growth forecast to 6.9% on strong Q2 momentum

Investing.com -- Fitch Ratings has increased its forecast for India’s economic growth in the current fiscal year to 6.9% from its previous estimate of 6.5%.

The ratings agency cited stronger-than-expected momentum in the June quarter, which was driven by robust services activity and resilient consumption.

India’s real GDP expanded by 7.8% year-on-year in the April-to-June quarter, accelerating from 7.4% in the previous three months. This performance exceeded Fitch’s projection of 6.7%.

In a note released Tuesday, Fitch stated that domestic demand will continue to be the key driver of growth, supported by strong real income dynamics and looser financial conditions.

The agency also highlighted potential challenges, noting that uncertainty around trade relations could dampen business sentiment and investment.

Fitch added that it expects these tariff rates to be negotiated lower in the future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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