New Delhi, 18 September (H.S.): The Indian economy has demonstrated resilience despite global shocks amid the ongoing crisis in West Asia. Global rating agency Moody’s Ratings has raised its forecast for India’s gross domestic product (GDP) growth in the current financial year 2026-27 from 6 per cent to 7 per cent. At the same time, the agency has cautioned about the risk of higher inflation due to elevated oil prices and the potential impact of El Niño.

In its latest forecast released on Friday, the rating agency said India’s real GDP growth had stood at 8.2 per cent year-on-year in the first quarter of calendar year 2026, compared with 7.3 per cent in 2025. According to the agency, the strong performance was supported by robust private consumption, investment, sustained government spending on infrastructure, continued strength in the services sector and a pickup in private investment.

Earlier this month, Japan Credit Rating Agency (JCR) upgraded India’s credit rating to ‘A-’. The upgrade came after a gap of 35 years, with the agency citing India’s strong economic growth and resilient financial system.

Moody’s said it had raised its real GDP growth forecast for the financial year ending March 31, 2027, from 6 per cent to 7 per cent, citing the Indian economy’s demonstrated resilience to global shocks arising from the conflict in West Asia.

The agency said the upward revision reflected the strength of the Indian economy amid uncertainties stemming from the ongoing crisis in West Asia. Its latest forecast is higher than the growth projections issued by the Reserve Bank of India (RBI), S&P Global Ratings and Fitch Ratings. Moody’s also expects India to continue expanding at a faster pace than the other G20 economies.

The Indian economy grew at a rate of 7.8 per cent in the April-June quarter of financial year 2026-27. This was higher than the RBI’s GDP growth forecast of 7 per cent for the financial year.

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Hindusthan Samachar / Jun Sarkar