Archive · 1 Aug 2025
Fitch Lowers India GDP Forecast Amid US Tariff Concerns
Fitch, a company that looks at how financially healthy countries and companies are, thinks India's economy will grow a little slower than before, about 6.3%.
They also believe that new taxes from the US won't hurt Indian companies too much.
The US has announced taxes on goods from India, and the two countries are discussing a trade agreement.
Some sectors, like construction and utilities, should be okay, but other sectors, like pharmaceuticals and auto suppliers, could face some challenges.
Fitch Ratings lowered India's GDP growth forecast to 6.3% for the current fiscal year.
Fitch expects limited direct impact on Indian corporates from increased US tariffs.
US President announced 25% tariffs on India, effective August 7.
India and the US are negotiating a bilateral trade deal, with India hardening its stance on duty concessions.
Domestically focused sectors are expected to see minimal direct effects from tariffs.
- Who
- Fitch Ratings, US President Donald Trump
- What
- Fitch Ratings' revised GDP projections and analysis of US tariffs.
- When
- Fiscal year ending March 2026
- Where
- India, US
- Why
- To provide an economic outlook and analyze the impact of US tariffs.
Positive Outlook
Negative Outlook
Tariff Impact
Positive Outlook
Fitch expects limited direct impact on rated Indian corporates.
Negative Outlook
N/A
- GDP Growth Projection
- 6.3%
- Previous GDP Projection
- 6.4%
- US Tariff Percentage
- 25%
- Tariff Effective Date
- August 7
Sources
ICRA shares up 2% in early trade on 19% y-o-y Q1 profit rise
ITC shares gain ahead of Q1 results; here's earnings preview
Fitch cuts India’s GDP growth projections to 6.3%; sees limited impact of US tariffs on corporates
Fitch cuts India GDP growth projections to 6.3%; sees limited impact of US tariffs on corporates
