Moody’s raises India’s FY27 growth forecast to 7% on strong economic momentum

Moody’s Ratings has raised its growth forecast for the Indian economy to 7% for the current financial year, from its earlier estimate of 6.5%, citing broad-based economic momentum and the country’s resilience to the energy supply shock linked to the Iran war.In its Global Macro Outlook 2027-28, the US-based rating agency said robust consumption, improving investment dynamics and strong macroeconomic fundamentals should help India sustain growth near 7% over the medium term."India's broad-based economic momentum and demonstrated resilience to the energy supply shock warrant upward revisions to our 2026-27 growth forecasts to 7 per cent from 6.5 per cent," Moody’s said.The agency, however, flagged near-term risks to the growth outlook, including rising price pressures on household consumption, a deficient southwest monsoon and strengthening El Nino conditions that could weigh on agricultural output and rural demand.Inflation, monsoon pose risks to growthMoody’s said household consumption remained vulnerable to "intensifying and broadening price…