Moody’s raises India FY2026-27 growth forecast to 7%

Moody’s Ratings raised its forecast for India’s economic growth in fiscal 2026-27 to 7% from 6.5%, citing broad-based economic momentum and the country’s ability to manage an energy supply shock. The revised estimate appears in the agency’s Global Macro Outlook 2027-28 and is Moody’s assessment, not a reported final growth result.

The agency said consumption and improving investment dynamics support the outlook, and that India’s economy appears positioned to grow near 7% over the medium term. It said stronger private investment could lift growth above its baseline if it significantly boosts manufacturing, employment and productivity.

Indicators cited by Moody’s include robust production and imports of capital goods, faster growth in industrial credit and rising capacity utilisation. The agency said these measures suggest India may be nearing a new private capital expenditure cycle after several years of corporate and banking-sector balance-sheet repair. It also pointed to expanding manufacturing and services purchasing manager indexes and year-on-year growth in goods and services tax revenue, vehicle sales and merchandise exports.

Moody’s said India had adjusted to higher energy...