Moody’s raises India growth forecast to 7% for 2026 and 2027, sees signs of private capex revival

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- ✓Moody’s Ratings raised India’s GDP growth forecast to 7 percent for 2026 and 2027.
- ✓The agency said India adjusted well to energy shocks and showed signs of a private investment revival.
- ✓However, it warned that a weak monsoon and higher interest rates could pose risks to this steady economic growth.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Moneycontrol
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
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Moody’s Ratings raised India’s GDP growth forecast by half a percentage point to 7 percent for both 2026 and 2027, citing resilient consumption, improving investment and the economy’s ability to absorb the energy supply shock. It expects growth to hold at 7 percent in 2029.
The ratings agency expects global growth to hold at 2.6 percent through 2028, while China’s growth is projected to slow from 4.5 percent in 2026 to 4 percent in 2028.
India adjusted to the energy price shock “better than previously assumed”, Moody’s said, helped by its ability to diversify crude oil and gas supplies. State-backed oil marketing companies and tax cuts cushioned consumers from the immediate impact of higher prices, while the country’s refining capacity helped limit fuel supply disruptions.
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