India’s economy is likely to grow 7.5% in the fiscal year ending March 2026, faster than 7.4% earlier projected, as strong domestic demand keeps activity resilient despite a slowdown in January and February, Fitch Ratings said. The ratings agency also said that global growth should remain stable if the recent oil price surge triggered by the Iran conflict proves temporary. Fitch Ratings said India's domestic demand will remain the main engine of growth this year, with consumer spending and investment projected to rise by 8.6% and 6.9%, respectively, in the current fiscal year. "We expect growth to slow in 1HFY26/27; rising inflation will constrain real incomes, limiting consumer spending growth." India’s gross domestic product (GDP) growth slowed to 7.8% in the third quarter of fiscal year 2026, compared with 8.4% in the previous quarter.

Source: Economic Times March 15, 2026 05:36 UTC