Fitch Raises India FY27 GDP Growth Forecast to 6.9% From 6.4%, Sees 25 Bps RBI Rate Hike in October
Fitch cited stronger June-quarter expansion and resilient demand as it lifted its forecast, while other agencies also see India growing faster.
- Fitch raised India FY27 GDP growth forecast to 6.9% from 6.4%, citing stronger-than-expected expansion in the June quarter. The agency also projects the RBI will raise rates by 25 basis points in October.
- The Indian economy expanded 7.8% in the June quarter, demonstrating resilience against the US-Iran war's economic fallout. This strong performance prompted Fitch to lift its growth outlook for the current fiscal year.
- Investment prospects look buoyant, with Fitch expecting growth of more than 10 per cent; non-food credit growth reached 19 per cent in July. Investment is projected to remain a stronger pillar of growth.
- The Reserve Bank is expected to raise rates to 5.5 per cent in October, with further increases to 5.75 per cent projected for early 2027. Rates should subsequently ease back to 5.5 per cent in 2028.
- Momentum will likely moderate due to elevated inflation, below-normal monsoon rainfall, and slowing manufacturing activity. Global Ratings and Moody projected India FY27 GDP growth at 7 per cent, signaling broad consensus on stronger expansion.
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The Economic Times
Times of IndiaFitch raises India FY27 GDP growth forecast to 6.9% from 6.4%, sees 25 bps RBI rate hike in October
Fitch Ratings has elevated India's GDP growth forecast to 6.9 percent for this fiscal year, reflecting strong economic performance in the June quarter. This indicates remarkable resilience in the economy, with private investments projected to soar beyond 10 percent. Furthermore, the Reserve Bank of India is expected to raise interest rates by 0.
Fitch raises India FY27 growth forecast to 6.9% from 6.4% on resilient economy, investment push
Rating agency expects private investment to rise more than 10%, but sees growth moderating as weak monsoon, higher inflation weigh on consumption; expects RBI rate hike in October
New Delhi, Sep 23 (IANS) Global rating agency Fitch on Wednesday raised India's growth forecast for FY27 to 6.9 per cent from the earlier 6.4 per cent. This was attributed to the economy's strong performance amid global energy shocks caused by the war in the Middle East. Fitch Ratings report said that India's growth was much better than the figures projected in its June Global Economic Outlook, leading to a 50 basis point (0.5 per cent) increase…
Fitch India GDP growth forecast increased, RBI interest rate hike expected in October. Follow Divya Bhaskar. Credit rating agency Fitch has increased India's GDP growth forecast for the current financial year 2026-27 from 6.4% to 6.9%. According to Fitch, the country's economic growth was 7.8% in the June quarter, which shows India's strong economic position.
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