Fitch Ratings raises India FY26 GDP forecast to 7.4% from 6.9%

Exam-focused facts from the 7 December 2025 current affairs briefing.

Key facts

Fitch Ratings has raised India’s GDP growth forecast for FY26 to 7.4% from 6.9%.
Private consumer spending is the main driver of growth this year, supported by strong real income dynamics and increased consumer sentiment.
India’s GDP growth accelerated to a six-quarter high of 8.2% in the second quarter of FY26, up from 5.6% in the same quarter last year.
Consumer price inflation fell to an all-time low of 0.3% in October, driven by lower food and drink prices (-3.7% in the year to October).
Fitch expects the Reserve Bank of India (RBI) to cut the policy rate once more in December to 5.25%, following 100bp of cuts in 2025.
Fitch projects India’s GDP growth to slow to 6.4% in FY27 and further to 6.2% in FY28.
India faces one of the highest ETRs on its exports to the US (about 35%); a trade agreement that lowers the ETR would boost external demand.