Moody's raises India's FY27 economic growth forecast to 7% citing resilience, but warns of inflation risks
Moody's Ratings increased India's economic growth forecast for fiscal year 2027 to seven percent. The agency cited the nation's resilience to ongoing West Asia conflict and strong domestic demand. However, higher energy prices and erratic weather pose inflation risks, potentially impacting consumption. Fiscal consolidation efforts continue, though rising expenditures may constrain progress.…
Moody's Ratings has revised its outlook for India's economic growth in fiscal year 2027, forecasting a 7% growth rate, up from the previous 6% projection. The agency's confidence stems from India's ability to withstand the ongoing conflict in West Asia. However, Moody's has also warned of potential inflation risks due to higher energy prices and El-Nino induced weather fluctuations.
India's GDP grew by 7.8% in fiscal year 2026, outpacing all other G-20 economies and similarly rated emerging market sovereigns. Moody's cautions that persistent conflict could push annual average inflation above the projected 4.8%, compared to 2.4% in fiscal year 2026. Despite this, India's resilience, driven by diversified crude import sources, substantial foreign exchange reserves, and robust domestic demand, provides a significant buffer against economic shocks.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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