India’s economy is proving tough and steady despite global tensions, with experts at Fitch Ratings predicting it will grow above 6 percent for the next three years. In their latest Global Economic Outlook report, released on Wednesday, they’ve bumped up the forecast for the current fiscal year ending March 2026 to an impressive 6.9 percent, up from 6.5 percent earlier this year.
This positive shift comes after India’s second-quarter growth hit 7.8 percent in 2025, showing real strength. Fitch says domestic demand will lead the charge, thanks to rising real incomes boosting consumer spending and easier financial conditions sparking more investments.
Looking ahead, the report expects India’s annual growth to reach 6.3 percent in FY27. But as the economy runs a bit hotter than usual, it might slow slightly to 6.2 percent in FY28. On interest rates, Fitch believes the Reserve Bank of India (RBI) will cut them by 25 basis points by year-end, after checking the effects of recent policy changes. Rates should hold steady until the end of 2026, then start climbing in 2027.
Shifting to the bigger picture, Fitch has slightly raised its global growth forecast for 2025 to 2.4 percent. This boost comes from better-than-expected data in China and the eurozone, though the US economy is flashing warning signs of a slowdown.
Specifically, China’s growth projection for 2025 is now 4.7 percent, up from 4.2 percent in June. The eurozone gets a lift to 1.1 percent from 0.8 percent, while the US edges up to 1.6 percent from 1.5 percent. For 2026, worldwide growth is set at 2.3 percent.
Fitch’s Chief Economist, Brian Coulton, warns that clearer details on US tariff hikes won’t change how disruptive they are—they’ll still drag down global growth. Plus, hard data now shows the US slowing, not just surveys. The agency predicts the US Federal Reserve will cut rates twice by 25 basis points each in September and December this year, with three more cuts in 2026.
They also foresee rising price pressures in the US later in 2025, which could squeeze real wage growth and hit consumer demand as job creation eases up. Overall, it’s a mixed bag for the world economy, but India’s resilience stands out amid these India economic growth forecasts.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
