Moody's Raises India's GDP Forecast to 7% Citing Resilience Amid Middle East Conflict
Credit rating agency Moody's has upgraded India's real GDP growth forecast to 7% from 6% for the current fiscal year, highlighting the country's economic resilience amid ongoing Middle East tensions. The agency noted that India continues to outpace G20 economies and emerging market peers, despite lingering global risks. The forecast upgrade follows strong macroeconomic indicators, government spending on capital expenditure, and performance across key sunrise industries. Sectors driving momentum include artificial intelligence, semiconductors, smartphone and electronics manufacturing, and services. While domestic challenges such as consumer price inflation and geopolitical oil shocks remain concerns, India's broader macroeconomic management and export diversification have helped maintain economic stability. Additionally, reference was made to remarks by Prime Minister Narendra Modi regarding India's sustained growth momentum and sovereign credit rating upgrades by international agencies.
