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Fitch Ratings Revises India's FY26 GDP Growth Forecast Downward to 6.4%.

Economy Business | Dated: 23 Apr 2025

In April 2025, Fitch Ratings, headquartered in New York (USA) and London (UK), revised India's Gross Domestic Product (GDP) growth forecast for the fiscal year 2025-26 (FY26) downward by 10 basis points (bps) to 6.4%, down from the earlier projection of 6.5%, due to escalating global trade tensions.

🎯 Key Highlights:

  • - The forecast for FY2024-25 (FY25) has also been trimmed by 10 bps to 6.2%, while the estimate for FY2026-27 (FY27) remains unchanged at 6.3%.
  • - The downward revision reflects rising risks from a "severe escalation" in global trade conflicts, especially amid uncertainty surrounding US trade policy, which has negatively impacted business investments and equity markets.
  • - Fitch also downgraded its global growth forecast for 2025 by 0.4 percentage points, with both China and the United States seeing a 0.5 percentage point cut in their respective growth projections.

💡 Other Important Facts:

  • (i) Global economic growth is now projected to stay below 2% in 2025, marking the weakest pace since the 2009 financial crisis, excluding the pandemic years.
  • (ii) In February 2025, Moody’s Ratings also revised India’s 2025 GDP growth forecast to 5.5-6.5%, down from 6.6%.

📚 Test Your Knowledge:

What is the recently revised GDP growth forecast for India for FY2025-26 (FY26) as per Fitch Ratings?

Correct Answer: 6.4%

🚀 Quick Recap: