New Delhi: Global ratings agency Moody’s on Friday raised India’s GDP growth forecast to 7 per cent for FY27, from its earlier 6 per cent projection for the current fiscal, as the country continues to show resilience amid global headwinds.
Moody’s said that it continues to expect India to grow faster than all other G20 economies.
However, elevated energy prices and El Nino-related food price pressures remain which poses risks for inflation, said the ratings major.
Despite global headwinds, India recorded real GDP growth at Rs 81.36 lakh crore in the first quarter of this fiscal (Q1 FY27), against Rs 75.46 lakh crore in Q1 FY 2025-26 — registering a robust growth rate of 7.8 per cent.
Public capital expenditure, digitalisation, services exports and improving financial-sector balance sheets were cited by experts as important supports.
Nominal GDP (or GDP at current prices) in Q1 FY 2026-27 is estimated at Rs 88.27 lakh crore, against Rs 80 lakh crore in Q1 of FY 2025-26, showing a growth rate of 10.3 per cent, the Ministry of Statistics and Programme Implementation said in a statement.
Notably, the real gross value added (GVA) in Q1 FY 2026-27 is estimated at Rs 73.82 lakh crore, against Rs 68.21 lakh crore in Q1 FY 2025-26, showing a growth rate of 8.2 per cent.
On the other hand, nominal GVA in Q1 FY 2026-27 is estimated at Rs 80.53 lakh crore, against Rs 72.24 lakh crore in Q1 of FY 2025-26, showing a growth rate of 11.5 per cent, according to the data.
Amid persistent global uncertainty, domestic economic activity has remained resilient, as reflected in high-frequency indicators for Q1. Early corporate results for Q1 also indicate healthy performance in the manufacturing sector, said Malhotra, adding that India remains the fastest-growing economy amid persistent global uncertainties.
India could sustain over 7 per cent growth over the medium term if policy reforms can crowd in private investment and raise manufacturing competitiveness, said economists.
(IANS)
