Global ratings agency Moody's raises India's real GDP growth forecast to 7% for the fiscal year 2026-27, up from its earlier projection of 6%, citing the resilience of the Indian economy in the face of global shocks caused by the conflict in West Asia.
In a recent revision, Moody's has raised India's real GDP growth forecast for the fiscal year 2026-27 to 7%, which was previously projected at 6%. This upgrade is attributed to the resilience displayed by the Indian economy in the face of global shocks originating from the conflict in West Asia.
According to Moody's, India's real GDP growth registered a significant rise to 8.2% year-on-year during the first half of the fiscal year 2026-27, compared to 7.3% in the previous fiscal year 2025-26.
The agency attributes this growth surge to several factors including stronger private consumption, robust investment, continued government spending on infrastructure, a revival in private investment, and sustained strength in the services sector.
However, Moody’s has also highlighted potential risks that could impact the outlook. These risks include El Niño-related disruptions that may cause food prices to escalate and impact private consumption, higher energy and fertiliser import costs, weaker external demand, lower remittances from West Asia, and a widening current account deficit, all of which could potentially slow economic growth.
Source:
Akashvani News
