Fitch reduced India’s GDP growth estimates to 6.4%, the impact of the risk of global trade war


New Delhi:
India GDP Growth Rate 2025: Fitch Ratings said that India’s GDP growth rate in FY 2025-26 and 6.3 percent in 2026-27 amidst global uncertainties on Thursday, 17 April. Global rating agency is a Global Rating Agency for the year 2024-25 and 2625-26 for FY 2024-25-26 between the fears of global trade war. The GDP growth rate estimates have been estimated at 6.2 percent and 6.4 percent respectively by deducting 10-10 basis points in estimates.

0.4 percent reduction in global development estimates

According to Fitch, the forecast of increase for FY 2026-27 is unchanged at 6.3 percent. In addition to the revised development forecast for India, Fitch has also reduced its global development estimates for 2025 by 0.4 percent. Also, 0.5 percent (50-50 basis points) have been cut in development estimates for China and the US.

“It is difficult to predict American trade policy with confidence,” Fitch said in its special update to the quarter global economic approach. Business investment possibilities are damaging due to huge policy uncertainty, declining equity value is reducing domestic assets, and American exporters will have to face retaliation. “

US GDP growth rate expected to be at 1.2%

The US GDP growth for the year 2025 is expected to be positive at 1.2 percent. Meanwhile, according to Fitch’s estimates, China’s growth is expected to fall below four percent this year and next year and stay far below one percent of the GDP growth of Eurozone.

According to the Global Rating Agency, due to the large size of India’s domestic market, which reduces dependence on external demand, the country’s American tariff is expected to be safe from growth.

India does not have much effect on tariff risks- Morgan Stanley

A recent report by Morgan Stanley also stated that India is “the best position in Asia” amidst global uncertainty due to US President Donald Trump’s threat to increase tariffs. The report said, “Tariff risks will have a direct impact on India. However, we believe that India will not be affected much as it is the lowest in the goods trade versus GDP ratio region.”

Explain that the Indian economy had gained 6.2 percent in the third quarter of FY 2024-25, gaining momentum.



(Tagstotranslate) Economic Outlook 2025 (T) Global Trade Tensions (T) India GDP Growth Rate (T) Global Trade War (T) Indian Economy
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