Business EconomyPosted at: Nov 11 2026 7:21PM

New Delhi, Nov 11 (UNI) Moody's Ratings has revised India’s growth outlook saying the economy is likely to grow at a higher rate of 7 per cent in the current fiscal. It said the growth is led by broad-based economic momentum and energy supply shock resilience.
In its Global Macro Outlook 2027-28, Moody's said that near-term risks to growth persist as household consumption remains vulnerable to "intensifying and broadening price pressures".
Headline inflation will be close to the upper end of the Reserve Bank of India's (RBI) 2-6 per cent target range, while a deficient southwest monsoon and strengthening El Nino conditions will weigh on agricultural output and rural demand, the report said.
"With the RBI on track to raise rates further, tighter monetary policy could delay the recovery in private investment," Moody's added.
"India's broad-based economic momentum and demonstrated resilience to the energy supply shock warrant upward revisions to our 2026-27 growth forecasts to 7 per cent from 6.5 per cent," it added.
Robust consumption, improving investment dynamics and strong macroeconomic fundamentals imply that the economy appears well positioned to sustain growth near 7 per cent over the medium term, Moody's said.
High frequency indicators, including robust capital goods production and imports, accelerating industrial credit growth and rising capacity utilisation, suggest that India may be at the cusp of a new private capex cycle after several years of corporate and banking- sector balance sheet repair, the agency said.
Broader economic activity also remains solid amid expanding manufacturing and services purchasing manager indexes and double-digit year-on-year growth in goods and services tax revenue, vehicle sales and merchandise exports, it added.
UNI VK RN