This comes a day after Reserve Bank revised downwards its real GDP forecast for 2015-16 to 7.4 per cent from earlier expectation of 7.6 per cent, saying growth is expected to pick up in the latter part of the fiscal.
"India takes over as the fastest growing BRIC this year with 7.5 per cent GDP growth, accelerating to 8 per cent in 2016 driven by structural reforms and higher investment," Fitch said in its Global Economic Outlook report.
"Fitch has revised its forecast for Indian real GDP growth for FY16 to 7.5 per cent from 7.8 per cent," it said.
Below average rainfall during this year's monsoon season, recorded at 14 per cent below average, is also likely to lower growth somewhat, it said. Agriculture contributes close to 18 per cent of the India's GDP.
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"The effect of gradual implementation of a number of structural reforms is also expected to contribute to higher growth, even though progress is lacking on big ticket reforms such as the Land Acquisition Amendment Bill and the Goods and Services Tax," Fitch said.
It said monetary policy loosening is also likely to contribute to a pickup in growth, although monetary transmission is limited given relatively weak banking sector health.
As regards the China slowdown, Fitch said India would be "less affected" by falling demand, but the increasing risk premium complicates the monetary policy response to the shock.