Moody’s Investors Service has raised India’s real GDP growth forecast for FY27 to 7% from 6%. The agency credited strong fiscal policies and resilience despite global uncertainties. India’s economy expanded 7.8% in the April to June quarter of FY27, driven by capital investment and manufacturing growth.
Moody’s said India will remain the fastest growing among G20 economies and peers with similar ratings. The agency praised the government’s restrained fiscal response to geopolitical shocks but warned of risks. Rising global energy prices could increase subsidy burdens. El Niño effects may push food inflation higher, affecting consumer demand. Defence and infrastructure spending could slow fiscal consolidation.
The report noted that while mining and consumer services showed weakness, manufacturing and investment offset those declines. Moody’s expects India’s growth momentum to continue, supported by policy stability and domestic demand.
On markets, Nifty 50 has fallen nearly 11% this year. The rupee is trading at ₹96 per US dollar, weaker by 6% since January 2026. Moody’s said balancing growth with fiscal discipline will be crucial as India navigates global challenges.
