Archive · 18 Sep 2026
Moody’s Raises India FY27 Growth Forecast to 7% Amid Resilience
Moody’s Ratings believes India’s economy will grow faster than it previously expected.
It raised its forecast for growth in FY27 from 6% to 7%.
Families are spending more, businesses are investing, and the government continues to build infrastructure.
Services and manufacturing have also supported the economy.
Moody’s said India has handled the West Asia conflict better than expected.
Other groups, including the IMF, S&P Global Ratings and the Reserve Bank of India, have lower forecasts.
Higher oil prices could make fuel and other goods more expensive.
El Niño could also raise food prices.
These problems might reduce what families can buy and make government finances more difficult.
Moody’s Ratings raised India’s FY27 real GDP growth forecast from 6% to 7%.
The agency cited stronger consumption, investment, infrastructure spending and services activity.
India’s economy grew 7.8% in the April-June quarter of FY27 and 7.7% in FY26.
Moody’s forecast exceeds projections from the IMF, S&P Global Ratings and the Reserve Bank of India.
Higher energy prices, El Niño-related food pressures and slower fiscal consolidation remain risks.
- Who
- Moody’s Ratings revised its forecast for India.
- What
- It raised India’s FY27 real GDP growth forecast to 7% from 6%.
- When
- The revision applies to FY27; the report also cites April-June FY27 and FY26 economic data.
- Where
- India.
- Why
- Stronger private consumption, investment, infrastructure spending and services activity have made the economy more resilient than expected.
More optimistic growth outlook
More cautious growth outlook
India’s growth prospects
More optimistic growth outlook
Moody’s expects 7% growth, supported by consumption, investment, infrastructure spending and services activity.
More cautious growth outlook
The IMF, S&P Global Ratings and the Reserve Bank of India expect slower FY27 growth of 6.4% to 6.6%.
Impact of external shocks
More optimistic growth outlook
Moody’s said India has been more resilient to the West Asia conflict than expected because of strong domestic economic activity.
More cautious growth outlook
The IMF and S&P Global Ratings warned that the conflict, higher energy prices and energy-supply disruptions could slow growth.
Inflation and public finances
More optimistic growth outlook
Continued infrastructure investment and a potential revival in private investment could sustain economic activity.
More cautious growth outlook
Higher energy and food prices could weaken consumption, increase subsidy or defence pressures and slow fiscal consolidation.
- New FY27 growth forecast
- 7% from Moody’s Ratings
- Previous Moody’s forecast
- 6%
- April-June FY27 growth
- 7.8% real GDP growth
- FY26 growth
- 7.7%
- Other FY27 forecasts
- IMF: 6.4%; S&P Global Ratings: 6.6%; Reserve Bank of India: 6.6%
- Fiscal deficit targets
- 4.3% of GDP in FY27, compared with 4.4% in FY26
- India’s sovereign rating
- Baa3 with a stable outlook