Moody’s Ratings has upgraded India’s FY27 economic growth forecast to 7%, citing strong consumption, investment momentum and resilience against global energy supply disruptions.

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• Moody’s Ratings has raised India’s FY27 economic growth projection from 6.5% to 7%, according to its Global Macro Outlook 2027-28 released on November 11, 2026.
• The upward revision reflects broad-based economic momentum and India’s stronger-than-expected ability to withstand disruptions caused by the global energy supply shock.
• Robust domestic consumption, improving investment activity and strong macroeconomic fundamentals indicate that India could sustain approximately 7% economic growth over theedium term.
• Moody’s stated that sustained private investment growth could push economic expansion beyond its baseline forecast by strengthening manufacturing, employment generation and productivity.
• India has managed energy price pressures through diversified crude oil and natural gas supplies, alongside consumer protection measures involving state-backed oil marketing companies.
• Tax reductions have also helped cushion consumers against rising energy costs, demonstrating India’s ability to respond effectively to external supply and price shocks.
• India’s extensive refining infrastructure, including the world’s largest single-site refining complex, has helped minimise fuel disruptions and strengthen refined petroleum product exports.
• Rising capital goods production and imports, accelerating industrial credit growth and increasing capacity utilisation indicate the possible beginning of a new private investment cycle.
• Several years of corporate and banking-sector balance sheet repair have strengthened the financial foundations necessary to support fresh private capital expenditure.
• Expanding manufacturing and services activity, reflected in purchasing managers’ indices, indicates continued strength across India’s major economic sectors.
• Goods and Services Tax revenue, vehicle sales and merchandise exports have recorded double-digit year-on-year growth, highlighting sustained economic activity and domestic demand.
• Moody’s assessment suggests India remains well positioned for medium-term growth, while stronger private investment could further improve its economic performance.