Fitch Ratings on Wednesday raised its forecast for India’s GDP growth in FY27 to 6.9% from 6.4%, citing stronger-than-expected economic expansion in the June quarter and the resilience of the broader economy.

The ratings agency expects economic growth to lose some momentum during the rest of the fiscal year. It also expects the Reserve Bank of India (RBI) to raise interest rates by 0.25% at its October monetary policy meeting.

Fitch noted that India’s economy grew 7.8% in the June quarter, demonstrating resilience despite the impact of the US-Iran war and a significant deterioration in the country’s terms of trade during the first half of 2026.