Fitch unit raises GDP projection to 6.5% for this fiscal

New Delhi: BMI, a unit of Fitch Solutions, raised India's economic growth forecast for 2025-26 by 0.5 percentage points to 6.5%, citing strong performance in the second quarter of this financial year. The uptick in performance was primarily due to the GST rationalisation, it said.

Industrial production increased 3.7% year-on-year during July-September, highest in five quarters. Beyond lowering the cost of goods, the GST reforms helped improve the business environment and likely reduced policy uncertainty. These gains are estimated to have driven a 7.9% growth in the second quarter of the fiscal, according to the London-based research firm.

Gross Domestic Product (GDP) growth in the first quarter was 7.8%. Official figures for the second quarter will be released on November 28.