New Delhi, 12 May (H.S.): Global rating agency Moody’s Ratings has slashed India’s economic growth forecast for 2026 by 0.8 percentage points to 6 percent, amid the ongoing crisis in West Asia. The downgrade has been attributed to slower private consumption and industrial activity, along with higher energy costs.

In its May edition of the Global Macro Outlook released on Tuesday, Moody’s stated that rising energy prices and constraints in fuel and fertiliser supplies over the next six months are likely to affect countries differently, depending on their reliance and resilience.

The agency added that the global outlook remains highly uncertain, as the ceasefire situation between the United States and Iran remains fragile. “Under such a scenario, we expect India’s growth rate to decline by about 0.8 percentage points,” the rating firm said.

Moody’s has also cut India’s GDP growth forecast for 2027 (calendar year) by 0.5 percentage points to 6 percent. According to the agency, as energy supply conditions improve and shipping flows normalise, these pressures will gradually ease and economic activity should pick up. Moody’s stressed that India is “particularly sensitive” to high oil prices, because the country imports nearly 90 percent of its energy requirements. The Reserve Bank of India, in its first bi‑monthly monetary policy review for the fiscal year 2026–27, has projected GDP growth at 6.9 percent for the same period.

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Hindusthan Samachar / Jun Sarkar