Fitch cuts the forecast of GDP in India to 6.3 %

Fitch Ratses reduced the gross domestic product growth forecast in India for the fiscal year 26 to 6.3 % of its previous estimate by 6.4 %, while reporting directly limited direct repercussions from the increasing American definitions of Indian companies.

“We expect the growth of the gross domestic product of India by 6.3 percent and spending on the strong infrastructure for healthy demand for cement and construction materials, electricity, petroleum products, steel, engineering and construction (E & C) during the 26th fiscal year”, Vic said on Friday.

The agency expects credit standards for its Indian companies classified during the fiscal year ending in March 2026, driven by profit margins before benefits, taxes, destruction and wider consumption that can exceed the high CAPEX intensity.

On the tariff front, Fitch noticed a “directly limited influence” on Indian companies due to low exposure to moderate exports in general. However, he has warned of second -class risks of excessive global supply in some sectors. He also pointed out that the ongoing commercial negotiations in India and the United States can affect the end result, as it may reduce companies from risks by diversifying export destinations.

US President Donald Trump recently announced a 25 % tariff for Indian imports, along with an additional penalty related to India’s trade with Russia. The customs duties are scheduled to enter from August 7.

Meanwhile, India is presenting its position in bilateral commercial talks, as we resist pressure on the United States to make a duty of duty on agricultural products and dairy products – as India has never expanded these concessions under any free trade agreement.

According to Fitch, industries that focus locally such as oil and gas, cement, construction, communications, and isolated facilities should remain supported by local demand and regulations.

However, uncertainty about customs tariffs may weigh the act on estimated information technology exports to the United States and Europe, while possible transformations in American policy can also affect drug exports.

Fitch also warned that steel and chemicals may face price pressure due to the excess global supply to India, while mineral and mining companies may see more fluctuations in prices amid fears of wider growth.