♦ Fitch Ratings on 4 December 2025 revised India’s GDP growth forecast for FY26 to 7.4%, up from its earlier estimate of 6.9%, citing strong domestic demand and the positive impact of recent tax reforms. It said private consumption remains the primary engine of growth this fiscal year, supported by “strong real income dynamics, improved consumer sentiment, and the benefits of goods and services tax reforms.” 

♦ For FY27, Fitch expects growth to moderate to 6.4%, with domestic demand continuing to drive the economy. Public investment is likely to soften, while private investment is expected to strengthen in the second half of FY27.

♦ Fitch also expects the Indian rupee to strengthen to around 87 per US dollar next year (2026).