After Moody's, now S&P and Fitch raise their India growth forecasts
AI Summary
The upward revisions in India's growth forecasts by S&P and Fitch highlight the country's resilience amidst global economic challenges, positioning it as a key player in the emerging markets. However, the anticipated moderation in growth and potential interest rate hikes by the RBI due to inflationary pressures could impact consumer spending and investment sentiment. Retail investors should remain cautious and monitor inflation trends and monsoon impacts, as these factors could influence sector performance, particularly in agriculture and consumer goods.
Global rating agencies S&P and Fitch have raised their economic expansion forecasts for India by 40 basis points (bps) and 50 basis points, respectively, for the current fiscal year through March 2027, citing higher-than-expected growth in the June quarter.
The agencies, however, projected growth to moderate, especially in the second half of the fiscal year, from the June quarter's robust 7.8% and inflationary pressure to mount in the wake of the West Asia war and below-par monsoon rains. This could lead the Reserve bank of India (RBI) to raise the interest rates, they said in separate statements.
Original Article
Published on Livemint
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This is a economy news update from Livemint, published on 23 September 2026.
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