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Moody’s Raises India FY27 Growth Forecast to 7% From 6% on Resilient Economy, Stronger Investment
Moody’s said private consumption, infrastructure spending and a revival in investment are supporting the stronger outlook.
- On Friday, Moody's Ratings raised India's real GDP growth forecast for fiscal 2026-27 to 7% from 6%, citing the economy's resilience to the Middle East conflict and strong domestic demand.
- Strong private consumption, robust gross fixed capital formation, and public infrastructure spending drove the upgrade. India withstood external shocks better than previously anticipated, prompting the revision.
- Moody's 7% forecast is 0.6 percentage point above the International Monetary Fund's projection and 0.4 percentage point higher than S&P Global Ratings and Reserve Bank of India estimates.
- Retaining India's Baa3 long-term issuer ratings with a stable outlook, Moody's expects fiscal consolidation to continue gradually, supported by improving tax administration and nominal GDP growth.
- Elevated global energy prices and El Niño-related food pressures could push inflation above the 4.8% projection for FY27, while rising defense and infrastructure spending may constrain fiscal consolidation.
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Moody's raises India fiscal 2027 GDP growth forecast to 7% on Middle ...
·London, United Kingdom
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The Economic TimesReposted by 
Times of India
Times of IndiaMoody’s raises India FY27 growth forecast to 7% from 6% on resilient economy, stronger investment
Moody's has raised India's GDP growth forecast to seven percent for 2026-27. Strong private consumption and robust investment are driving this optimistic economic outlook. This revised forecast surpasses projections from the IMF and S&P Global Ratings. However, elevated energy prices and potential El Niño disruptions remain key risks. Fiscal consolidation is expected to continue gradually over the next few years.
·Mumbai, India
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Total News Sources14
Leaning Left1Leaning Right4Center3Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
13%
C 37%
R 50%
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