Moody's raises India fiscal 2027 GDP growth forecast to 7% on West Asia resilience
Moody's has upgraded India's fiscal 2027 GDP growth forecast to 7%, citing the country's resilience against global economic shocks. However, the agency warned that energy prices and inflation remain potential risks to this outlook.
Why it matters
Economic growth forecasts from major rating agencies influence investor confidence and government fiscal planning.
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.
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