Fitch Lowers India's GDP Growth Forecast to 6.4% Amid Global Trade Tensions
| Aspect | Details |
|---|---|
| Entity | Fitch Ratings |
| Key Event | Revised India's GDP growth forecast downward for the current fiscal year |
| Revised GDP Growth | 6.4% (down by 10 basis points) for 2024-25 and 2025-26; unchanged at 6.3% for 2026-27 |
| Global Growth Forecast | Reduced by 0.4 percentage points for 2025; expected to fall below 2%, the lowest since 2009 (excluding pandemic years) |
| US-China Trade War | US effective tariff rate (ETR) at 23%, the highest since 1909; bilateral tariffs exceed 100% |
| US Growth Forecast | 1.2% in 2025 (cut by 0.5 percentage points) |
| China Growth Forecast | Expected to remain below 4% in 2024 and 2025 |
| Eurozone Growth | Forecast to stay well below 1% |
| Impact on India | Export and business investment sectors face uncertainty; reduced household wealth due to equity price declines |