New Delhi, April 17 || Fitch Ratings on Thursday projected India's GDP growth at 6.4 per cent for FY26 amid global uncertainties, while retaining the projections for the next financial year (FY27) unchanged at 6.3 per cent.
For India, the global ratings agency reduced GDP growth estimates for both the 2024-25 fiscal year and the current 2025-26 fiscal year by 10 basis points to 6.2 per cent and 6.4 per cent, respectively, amid fears of a global trade war.
The growth forecast for the 2026-27 fiscal year remains at 6.3 per cent, according to Fitch.
In addition to India's revised growth forecast, Fitch also lowered its global growth projections for 2025 by 0.4 percentage points and cut growth estimates for China and the US by 0.5 percentage points, from its March outlook.
"It is difficult to predict US trade policy with any confidence. Massive policy uncertainty is hurting business investment prospects, equity price falls are reducing household wealth, and US exporters will be hit by retaliation," Fitch stated in its special update to the quarterly Global Economic Outlook.
The US GDP growth rate is expected to stay positive at 1.2 per cent for 2025. Meanwhile, China's growth is projected to fall below 4 per cent both this year and next, and growth in the eurozone is anticipated to remain well below 1 per cent, according to Fitch's projections.