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Moody's Cuts India's Growth Forecast Amid Rising Inflation Risks

4/5/2026

32 6 Full Breakdown

Summary

Story summary

Moody's Ratings lowered India's growth forecast for fiscal 2026-27 to 6%, from 6.8%, citing the Middle East conflict's impact on energy supplies and inflation risks.
Moody's notes India's heavy reliance on the region for crude oil and LPG raises fuel costs and risk of household shortages.
Moody's projects inflation at 4.8% in FY27, up from 2.4% in FY26.
Moody's also identifies subdued private consumption and weak industrial activity as headwinds.

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Story summary

Moody's Ratings lowered India's growth forecast for fiscal 2026-27 to 6%, from 6.8%, citing the Middle East conflict's impact on energy supplies and inflation risks.
Moody's notes India's heavy reliance on the region for crude oil and LPG raises fuel costs and risk of household shortages.
Moody's projects inflation at 4.8% in FY27, up from 2.4% in FY26.
Moody's also identifies subdued private consumption and weak industrial activity as headwinds.