Fitch Cuts India GDP Growth Projections to 6.3 pc; Sees limited impact of us tariffs on corporate – Amar Ujala Hindi News Live – India GDP: Fitch reduced GDP growth rate from 6.4% to 6.3%, said

In April, in its global economic scenario, Fitch had estimated India’s GDP growth to be 6.4 percent for 2025-26. Fitch said in the India Corporate Credit Trends report released on Friday, “We estimate that during the financial year 2026, India’s GDP growth will be 6.3 percent and strong infrastructure expenses will strengthen cement and manufacturing materials, electricity, petroleum products, steel and engineering and manufacturing (E&C) companies.”

Fitch Ratings hopes that the credit matrix of Indian corporates received ratings in the financial year ending March 2026 will improve, as a comprehensive EBITDA margin will balance their high capes.

Regarding the influence of American tariffs, Fitch said that he hoped that high American tariffs will have a “limited direct impact” on Indian companies rated, as the US export risk is generally of a moderate level.

However, in some cases additional supply may cause second class risks. Fitch said the Indo-US trade agreement may also affect the final result, and companies may try to reduce the impact of tariffs by diversifying exports. US President Donald Trump has announced a 25 percent tariff on India, as well as ‘fine’ on trade with Russia. These tariffs will be applicable from August 7.

India and the US are already negotiating on a bilateral trade agreement. In a conversation of this agreement, India has tightened its stance on American demand for concession in fees on agriculture and dairy products. New Delhi has so far not given any fee concession to any of its business partners in the free trade agreement in the dairy sector.

Fitch Ratings said in its report that domestic focused areas such as oil and gas upstream and downstream, cement and construction materials, engineering and construction, telecommunications and utilities will show minimal direct impact, which will be supported by local demand and/or regulatory stability.

However, tariff uncertainty may limit the IT and auto suppliers exported to the US and Europe in FY 2026, while potential American policy changes can affect pharmaceuticals. Fitch said that India may face pricing pressure due to additional supply, and more value volatility in metal and mining between growth risks may be seen.