MOODY’SRatings on Wednesday raised its growth forecast for the Indian economy to 7 per cent from 6.5 per cent earlier, for the financial year 2026-27 on the back of “India’s broad-based economic momentum and demonstrated resilience to the energy supply shock”. In its Global Macro Outlook 2027-28, Moody’s said that India had adjusted to higher energy prices better than previously anticipated, supported by its ability to diversify crude oil and natural gas supplies and limit the immediate impact on consumers. State-backed oil marketing companies and tax cuts have helped cushion households and businesses from the energy price shock.

 

The revised outlook comes after India’s economy expanded 7.8 per cent year-onyear in the April-June quarter, exceeding market expectations. An investment boom and strong manufacturing activity added to resilient consumer demand, supporting growth despite external economic pressures. “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 Moody’s report stated.