Story perspectives

Moody’s Lifts India FY27 GDP Forecast After 7.8% Growth

By Drooid · Sep 23, 2026, 4:16 AM UTC · How we work

Summary

India Lifts Forecasts

India posted 7.8% Q1 FY27 growth, prompting analysts to raise forecasts.
Moody’s lifted FY27 GDP forecast to 7% from 6% after strong Q1 data.
ICRA, Bank of Baroda, IDFC First Bank and CareEdge raised FY27 growth estimates to 7.1-7.5%.
Retail CPI inflation rose to 4.82% in August, a 20-month high above RBI’s 4% target.
Wholesale Price Index inflation hit 9.92% in August, its second-highest in 29 months, driven by energy.

Summary

WEF Downgrades India

The World Economic Forum ranked India fourth for favourable business environments, down from second.
Only 40% of chief economists now list India among their top three multinational destinations, versus 56% in May.
Geopolitical conflicts were cited by 97% of respondents as the main uncertainty affecting India’s outlook.
97% anticipate global AI adoption rise.
79% warn of a data-centre backlash.

History

Historical Context

In July 1991 Finance Minister Manmohan Singh, backed by Prime Minister P.V. Narasimha Rao, launched liberalisation after a balance-of-payments crisis forced an IMF-conditioned bailout. The reforms lifted foreign investment from about $132 million in 1991-92 to $5.3 billion by 1995-96 and spurred GDP growth that reached 5.8% that year. Today analysts cite that legacy as India projects near-7% growth for 2024-25 while balancing inflation and external risks.

1 of 3

India Lifts Forecasts

India posted 7.8% Q1 FY27 growth, prompting analysts to raise forecasts.
Moody’s lifted FY27 GDP forecast to 7% from 6% after strong Q1 data.
ICRA, Bank of Baroda, IDFC First Bank and CareEdge raised FY27 growth estimates to 7.1-7.5%.
Retail CPI inflation rose to 4.82% in August, a 20-month high above RBI’s 4% target.
Wholesale Price Index inflation hit 9.92% in August, its second-highest in 29 months, driven by energy.

1 / 3