Current Affairs - Economy - Discussion

Fitch Ratings has upgraded India’s GDP growth forecast for FY26 to 7.4%, reflecting strong consumer demand, rising confidence, and the positive impact of GST reforms. This revision follows India’s impressive 8.2% growth in the second quarter of FY26, which marked the fastest expansion in six quarters. The updated forecast indicates a more robust economic outlook driven primarily by private consumption. Fitch also noted a narrowing gap between nominal and real GDP due to stable inflation levels, making the growth more sustainable. While momentum may moderate later due to base effects, the 7.4% projection underscores India’s strong economic fundamentals.