By Admin 
Fittch Rating on India’s GDP: On the basis of the country’s favorable financial condition and strong domestic demand, the rating agency Fitch has increased India’s growth rate to 6.9 percent. Earlier this growth rate was 6.5 percent. The figures of these changes that came after the first quarter are quite important.
In its September global economic scenario (GEO), the rating agency said that there has been a rapid increase in economic activities between March and June quarters of the current financial year, and the actual GDP growth rate has increased from 7.4 percent of January-March to 7.8 percent on an annual basis. This is much higher than the 6.7 percent forecast in the Geo of June.
GDP’s high speed
Based on the results of April-June, the rating agency Fitch has revised its estimate for the financial year ended in March 2026 (FY 2025-26) from 6.5 percent to 6.5 percent of June. Fitch says that domestic demand will play a major role in promoting growth, as strong real income is increasing consumer spending and weakened financial situation will be compensated by investment.
Fitch has speculated that the annual growth in the second half of the financial year may be slow. Therefore, the growth rate in the next financial year 2026-27 is estimated to be reduced to 6.3 percent. Economy is running slightly above its capacity, so the growth rate in FY 2027-28 is likely to be reduced to 6.2 percent.
Consumer expenses may increase
The rating agency has said in its report that July industrial production figures and PMI survey are also indicating the strong economy of the country. Also, due to GST improvement, consumer expenses are expected to increase during FY 2026.
Also read: Despite the challenges, how is India’s economy performing tremendous performance? Chief Economic Advisor gave the reason