Moody's raises India's FY27 economic growth forecast to 7% citing resilience, but warns of inflation risks

Moody's Ratings increased India's economic growth forecast for fiscal year 2027 to seven percent. The agency cited the nation's resilience to ongoing West Asia conflict and strong domestic demand. However, higher energy prices and erratic weather pose inflation risks, potentially impacting consumption. Fiscal consolidation efforts continue, though rising expenditures may constrain progress. India's debt-to-GDP ratio is projected to decrease gradually over the medium term.