India’s GDP forecast for FY2025 was raised from 6.5% to 6.9%, driven by strong domestic demand, higher consumer spending, and supportive financial conditions.
GST reforms are seen as credit positive, expected to boost consumption and reduce risks to growth, despite global headwinds like higher US tariffs.
Medium-term outlook: India’s growth projected at 6.3% in FY2027, with the economy operating slightly above potential.
Monetary policy: The RBI may cut rates by 25 basis points by year-end.
Global forecast: Fitch projects 2.3% growth in 2026, supported by China and Eurozone momentum.
