Moody's raises India fiscal 2027 GDP growth forecast to 7% on West Asia resilience

Credit rating agency ‌Moody’s on Friday (September 18, 2026) raised India’s real ​GDP growth forecast ⁠to 7% from 6% for the current fiscal, citing its ‌resilience amid the West Asia conflict.

“Although we continue ‌to expect India ‌to ⁠grow faster than all other ⁠G-20 economies, as well as similarly rated emerging market sovereigns, risks ​remain”, it ‌said.

The agency said elevated energy prices and El Niño-related food price pressures pose risks ‌to inflation, consumption ​and growth.

Moody’s said India’s fiscal policy response to ⁠the West Asia shock had been muted, but warned that ‌higher global energy prices could increase subsidy spending and pressure the government to provide additional support, while rising defence and infrastructure spending ‌could constrain fiscal consolidation.