Several credit rating agencies lift their forecasts for India’s real GDP growth for the fiscal year ending March 31, 2027 (FY27), citing stronger-than-expected early-year activity. S&P Global Ratings raises its FY27 growth estimate to 7% from 6.6%, saying the June quarter performed better than anticipated.
Moody’s Ratings also forecasts 7% growth for FY27, up from 6%, attributing the revision to stronger domestic consumption, steady infrastructure investment, improving capital formation, early signs of recovery in private investment, and sustained services momentum. The agencies point to resilience despite an externally challenging backdrop that includes elevated energy prices, geopolitical risks, and tighter global financial conditions.
Fitch Ratings raises its FY27 estimate to 6.9% from 6.4%, citing stronger economic momentum and investment support, while still expecting growth to moderate later. Across the reports, all highlight risks that could affect the trajectory, including inflation pressures, interest-rate hikes by India’s central bank, and weather uncertainty—such as below-normal monsoon rainfall and risks linked to El Niño.
ADB separately raises its FY27 growth forecast to 7% from 6.6%, focusing on stronger investment activity and services export growth, while warning about geopolitical and weather-related risks that could feed into inflation and output.
