New Delhi, 17 April (IANS). Fitch Ratings on Thursday said that India’s GDP growth rate in FY 2025-26 and 6.3 percent in 2026-27 amid global uncertainties on Thursday.
The Global Rating Agency has issued estimates to stay at 6.2 percent and 6.4 percent respectively by deducting 10–10 basis points in India’s GDP growth rate estimates for FY 2024-25 and current financial year 2025-26 amid fears of global trade war.
According to Fitch, the forecast of increase for FY 2026–27 is unchanged at 6.3 percent.
Apart from the revised development forecast for India, Fitch has also reduced its global development estimates for 2025 by 0.4 percent. Also, development estimates for China and the US have been cut by 0.5 percent (50–50 basis points).
“It is difficult to predict American trade policy with confidence,” Fitch said in his special update to the quarter global economic approach. Business investment possibilities are damaging due to heavy policy uncertainty, declining equity value is reducing domestic assets, and American exporters will face retaliation. “
The US GDP growth for the year 2025 is expected to be positive at 1.2 percent.
Meanwhile, according to Fitch’s estimates, China’s growth is estimated to fall below four percent this year and next year and stay significantly below one percent of the GDP growth of Eurozone.
According to the Global Rating Agency, due to the large size of India’s domestic market, which reduces dependence on external demand, the country’s American tariff is expected to be safe from growth.
A recent report by Morgan Stanley also stated that India is “the best position in Asia” amidst global uncertainty due to US President Donald Trump’s threat to increase tariffs.
The report said, “Tariff risks will have a direct impact on India. However, we believe that India will not be affected much as it is the lowest in the goods trade versus GDP ratio region.”
The Indian economy gained 6.2 percent in the third quarter of FY 2024-25, gaining momentum.
-IANS
SKT/Ekde
