Business · Economy · 12 hrs ago
Moody’s raises India’s FY27 growth forecast to 7%
Moody’s expects India’s economy to grow 7% in fiscal 2026-27, up from its earlier forecast of 6.5%.
The agency cited broad economic momentum and resilience to energy supply shocks as reasons for the upgrade.
Strong consumption, improving investment and solid economic fundamentals also support the outlook.
Rising prices could weaken household spending, while a poor monsoon and stronger El Niño conditions could hurt farm output and rural demand.
Moody’s said India has limited the effects of the energy shock by diversifying oil and gas supplies and buffering consumers from immediate price rises.
Higher interest rates could delay private investment, even as signs point to a possible recovery in business spending; sustained investment could lift growth above the forecast.
Moody’s Ratings raised its forecast for India’s economic growth in fiscal 2026-27 to 7 per cent from 6.5 per cent.
The agency cited broad-based economic momentum and resilience to the energy supply shock.
It said robust consumption, improving investment dynamics and strong macroeconomic fundamentals support growth near 7 per cent over the medium term.
Moody’s warned that price pressures, a deficient southwest monsoon and strengthening El Niño conditions pose near-term risks.
It also said tighter monetary policy could delay a recovery in private investment.
- Who
- Moody’s Ratings.
- What
- It raised its forecast for India’s growth in fiscal 2026-27 to 7 per cent from 6.5 per cent.
- When
- Wednesday, November 11, 2026.
- Where
- India.
- Why
- Moody’s cited broad-based economic momentum and resilience to the energy supply shock.
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- Growth forecast
- 7 per cent for fiscal 2026-27
- Previous forecast
- 6.5 per cent
- Inflation target range
- 2-6 per cent
- Report
- Global Macro Outlook 2027-28
- Published
- November 11, 2026
4 sources
What people are saying
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
With the RBI on track to raise rates further, tighter monetary policy could delay the recovery in private investment