Fitch Ratings revised its GDP estimate on India for FY26 from 6.5% to 6.9%
Global rating agency Fitch, the US-BASED agency has upgraded its estimate on India's GDP growth for the financial year 2025-26 to 6.9% from the previous estimate of 6.5%. This revision comes after a better-than-projected economic performance during the April-June quarter of 2025, in which growth in real GDP picked up to 7.8% year-on-year, led by firm services sector growth and consumption from both private and government sectors. Fitch referred to firm domestic consumption owing to demand and easier financial conditions lifting investment as being major drivers of growth. In spite of expecting impact due to the tariff-storm during the year, Fitch points to sustained momentum from strong manufacturing and industrial data.
ALSO READ | India Responds to the ‘Ill-informed’ Remarks by Switzerland in UNHRC
Fitch's revision resonates with other major rating agencies such as S&P Global, which recently upgraded India's sovereign credit rating from 'BBB-' to 'BBB'. S&P praised India's swift post-pandemic bounce back, sustained fiscal consolidation, and enhanced policy certainty. Their forecasts also suggest robust GDP growth averaging around 6.8% annually in the coming years, reflecting confidence in India’s economic reforms and domestic market strength. These positive revisons and credit ratings by these agencies reflect growing global recognition of India’s evolving economic basics.
Although Fitch and S&P upgraded predictions and ratings, Moody's estimate and outlook is awaited. Moody's previously downgraded its growth projection to 6.3% for 2025, attributing the figure to geopolitical risks, international trade tensions, and external economic stress. But Moody's recognises India's strengthening per capita income as well and purchasing power, signaling strong domestic demand and long-term prospects amid near-term challenges.
These economic enhancements and revisions are a far cry from the negative labeling of India as a "dead economy" by the US President Donald Trump amid ongoing trade and tariff conflicts. Officials and experts outrightly dismissed such labeling, highlighting India as the world's fastest-growing major economy. India's rise from the 11th to one of the top five global economies, growing manufacturing base, demographic dividend, and surging exports indicate an alive, thriving economy by no means "dead."
ALSO READ | Indian POV on Nepal Crisis | What Is Happening in India’s Neighbourhood?
The positive GDP revisions and credit rating upgrades by S&P and Fitch re-assert India's robust domestic demand, stable macroeconomic policy, and strong growth potential. As the world waits for Moody's revised forecast, one thing is sure, India's economy is far from dead and set to continue its growth, debunking humilating narratives and reaffirming its position as a leading emerging economic power.
