Global ratings agency Moody’s has raised its forecast for India’s real GDP growth in fiscal year 2026–27 to 7%, compared with its earlier estimate of 6%. The revision comes after India recorded strong economic growth in the April–June quarter.
Government data showed that India’s economy grew 7.8% year-on-year during the April–June quarter, supported particularly by investment and manufacturing activity. Moody’s said India has demonstrated resilience despite uncertainty caused by the ongoing conflict in the Middle East.
At the same time, the agency highlighted several risks. Higher global energy prices could increase costs for an economy that imports a large amount of crude oil. Moody’s also pointed to the possibility of food-price pressures associated with El Niño conditions. Such factors could affect inflation, household consumption and overall economic activity.
The revised forecast provides an updated assessment of India’s economic outlook for the current fiscal year, but it remains a forecast rather than a guaranteed result. Future growth will depend on domestic demand, investment, inflation, energy prices and international economic conditions.
The Indian economy is being closely watched by investors and businesses because changes in growth expectations can influence investment decisions, financial markets and government economic planning
