Global ratings agency Moody’s has raised its forecast for India’s economic growth in 2026-27, citing the country’s resilience in the face of the ongoing Middle East conflict and wider global uncertainties. Moody’s now expects India’s real GDP to grow 7% in FY27, up from its earlier forecast of 6%.
The revision comes at a time when the global economy is facing several challenges, including elevated energy prices, wars in Eastern Europe and West Asia, disruption of oil supply, and uncertainty over inflation. India, however, has continued to demonstrate relatively strong domestic economic activity, prompting Moody’s to reassess the impact of these external shocks.
A key factor behind the improved outlook is the strength of domestic demand and investment. India’s economy grew 7.8% year-on-year in the April-June quarter of FY27, with strong investment and manufacturing activity helping offset weakness in sectors such as mining and consumer-facing services.
Moody’s said it continues to expect India to grow faster than all other G20 economies as well as similarly rated emerging-market countries. The latest forecast also places India’s projected growth above several other major international estimates.
The upgraded forecast underlines the role of India’s large domestic market and investment momentum in absorbing external shocks. With global growth facing uncertainty, the latest Moody’s assessment suggests that India’s economic performance remains supported by domestic drivers even as risks from energy prices and geopolitical developments persist.
