Moody’s raises India FY27 GDP growth forecast to 7% on West Asia resilience

New Delhi: Moody’s Ratings on Friday raised India’s real GDP growth forecast for the current fiscal to 7 per cent from 6 per cent earlier, citing resilience amid the West Asia conflict.

The credit rating agency, in a statement issued after a periodic review of India’s ‘Baa3’ sovereign rating on September 18, 2026, said the economy has shown resilience to global shocks but flagged risks.

“The agency said elevated energy prices and El Niño-related food price pressures pose risks to inflation, consumption and growth,” Moody’s noted.

It also said it expects debt reduction to remain gradual and debt affordability to stay weaker, reflecting India’s high debt burden and elevated interest cost structure.