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Business
Moody's lifts FY27 growth outlook for India to 7% amid broad‑based momentum
✍️ The Hindu
🗓 12 Nov 2026, 06:46 AM
👁 9
Credit rating agency Moody's has raised its forecast for India's fiscal year 2027 GDP growth to 7%, citing sustained momentum across key sectors.
Moody's Investors Service, a leading global credit rating agency, upgraded its projection for India's gross domestic product growth in the fiscal year 2027 to 7 percent. The revision reflects the agency's assessment of a broad-based acceleration in economic activity, spanning consumption, private investment and export performance.
The agency highlighted that domestic demand remains resilient, with household spending and services growth showing steady improvement. At the same time, private sector capital formation has picked up, supported by favourable policy measures and improving business confidence.
Export earnings have also contributed to the upbeat outlook, as higher global demand for Indian goods and services adds to the external sector's strength. Moody's said the combination of these factors underpins its confidence in a sustained growth trajectory for the country.
Analysts note that the higher forecast could influence foreign investor sentiment and may lead to a reassessment of sovereign credit ratings. However, Moody's cautioned that the outlook remains subject to risks such as global monetary tightening and domestic fiscal pressures.
The revised estimate arrives as the Indian government continues to pursue reforms aimed at boosting infrastructure, manufacturing and digitalisation, which Moody's expects to further reinforce the growth momentum.
The agency highlighted that domestic demand remains resilient, with household spending and services growth showing steady improvement. At the same time, private sector capital formation has picked up, supported by favourable policy measures and improving business confidence.
Export earnings have also contributed to the upbeat outlook, as higher global demand for Indian goods and services adds to the external sector's strength. Moody's said the combination of these factors underpins its confidence in a sustained growth trajectory for the country.
Analysts note that the higher forecast could influence foreign investor sentiment and may lead to a reassessment of sovereign credit ratings. However, Moody's cautioned that the outlook remains subject to risks such as global monetary tightening and domestic fiscal pressures.
The revised estimate arrives as the Indian government continues to pursue reforms aimed at boosting infrastructure, manufacturing and digitalisation, which Moody's expects to further reinforce the growth momentum.