New Delhi: India's economy is on track to wilt Asia's fastest-growing major economy in 2026, equal to a new report by global credit ratings organ Fitch Ratings.
Fitch Ratings expects the country’s economy to expand by virtually 6.4 per cent this year, a rate higher than key regional peers like the Philippines, Indonesia and Malaysia.
What does the report say?
According to the Fitch Ratings reports, "Economic growth in India, Indonesia and the Philippines is likely to be least unauthentic by trade pattern changes in the near term, as manufacturing exports are low in their relatively sealed economies."
"India is expanding its trade relationship with countries outside of the US through a number of trade deals, most recently with the EU, to offset risks from US tariffs," Fitch Ratings report say.
What well-nigh policy rate?
Fitch Ratings said that on the policy front, RBI would alimony rates on hold for the near term.
“We expect the Reserve Bank of India to alimony its policy rate unchanged at 5.25 percent, pursuit the cut last December,” the rating firm said.
According to the Fitch Ratings reports, "India has enhanced fiscal transparency, including increasingly spending items in the budget, and revenues are buoyant on higher growth and introduction of goods and services tax, increasing the likelihood that government debt can follow a modest downward trend in the medium term."
As per the rating firm, the debt to GDP is expected to stay high.
Dream of $7.3 trillion by 2030?
With GDP valued at $4.18 trillion, India has surpassed Japan to wilt the world's fourth-largest economy and is poised to transplant Germany from the third rank in the next 2.5 to 3 years with a projected GDP of $7.3 trillion by 2030, equal to reports
The growth momentum remoter surprised on the upside, with GDP expanding to a six-quarter upper in Q2 of 2025-26, reflecting India's resilience tween persistent global trade uncertainties.
India's real GDP grew 8.2 per cent in Q2 FY2025-26, up from 7.8 per cent in the previous quarter and 7.4 per cent in Q4 of 2024-25, led by resilient domestic demand surrounded global trade and policy uncertainties. Real gross value widow (GVA) expanded by 8.1 per cent, catalysed by buoyant industrial and services sectors.
