India’s growth is making the world rewrite its forecast: MoSPI Secretary Saurabh Garg

India's outperforming economy is prompting international ratings agencies and research firms to revise their growth forecasts upward, according to MoSPI Secretary Saurabh Garg. Speaking at the Kautilya Economic Conclave, Garg highlighted the resilience of the economy, which expanded by 7.8% in the first quarter of FY27. He noted that continued corporate activity and capital spending provided further evidence of strength across manufacturing and services sectors.

Several leading agencies, including S&P Global Ratings and Fitch Ratings, have raised their India growth projections in recent weeks following the stronger-than-expected first-quarter performance. Garg explained that these revisions aligned with the broader picture emerging from corporate earnings and investment activity, including private sector capital expenditure. Government investment also remained high, contributing to the overall positive momentum.

Garg emphasized that the improvement in international growth estimates reflects the positive momentum observed in India over recent months and through the first quarter. He attributed the upward revisions to the optimism seen in the economy's recent performance. Despite potential risks from tensions in West Asia and their impact on global crude oil prices, Garg noted that policy responses from both the government and private sector helped cushion the economy against external shocks.

The resilience demonstrated by India's economy in the face of geopolitical and commodity-price risks underscores the combined effect of government measures and responses from households and businesses.