Fitch raises India FY27 growth forecast to 6.9% but expects higher interest rates
Fitch Ratings raised India's FY27 GDP growth forecast to 6.9% following a surprising 8.6% growth in Q1 FY26. However, it anticipates a slowdown in economic momentum, citing potential impacts from below-normal monsoon rains and rising inflation. The Reserve Bank of India is expected to increase its policy rate to 5.5% in October, with further hikes anticipated into 2027.