Moody’s ups India’s FY27 growth estimate to 7% on broad-based momentum
- IBEF
- November 12, 2026
Moody’s Ratings has revised India’s economic growth forecast for FY27 upwards to 7% from 6.5%, according to its Global Macro Outlook 2027-28 released on November 11, 2026. The revision cites broad-based economic momentum, and India’s demonstrated resilience to the energy supply shock. Robust consumption, improving investment dynamics and strong macroeconomic fundamentals indicate that the economy is well positioned to sustain growth of around 7% over the medium term. A sustained private investment boom that materially boosts manufacturing, employment and productivity could lift growth above Moody’s baseline projections. India has adjusted to the energy price shock better than previously assumed. This was helped by its ability to diversify crude and gas supplies and to buffer consumers through state-backed oil marketing companies and tax cuts.
India is also home to the world’s largest single-site refining complex. Its large and sophisticated refining capacity has helped limit fuel supply disruptions while supporting its role as a major exporter of refined petroleum products. 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 capital expenditure (capex) cycle. This follows several years of corporate and banking-sector balance sheet repair. Broader economic activity remains solid, with expanding manufacturing and services purchasing managers’ indices (PMIs). Goods and Services Tax (GST) revenue, vehicle sales and merchandise exports have also recorded double-digit year-on-year (YoY) growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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