The global ratings agency Moody’s today raised India’s real GDP growth forecast to 7 per cent, from its earlier projection of 6 per cent for the current financial year. The agency said that the upward revision reflects the resilience of the Indian economy amid the global shock caused by the conflict in West Asia.
The agency expects India to continue growing faster than all other G20 economies. Moody’s said India’s real GDP growth rose to 8.2 per cent year-on-year in the first half of 2026, compared with 7.3 per cent in 2025. The growth was supported by stronger private consumption, robust investment, continued government spending on infrastructure, a revival in private investment and sustained strength in the services sector. However, Moody’s has warned of risks to the outlook.
El Niño-related disruptions could push up food prices and affect private consumption. Higher energy and fertiliser import costs, weaker external demand and lower remittances from West Asia could also widen the current account deficit and slow economic growth.
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