Moody’s Lowers India’s FY27 GDP Growth Forecast to 6% Amid West Asia Conflict
In April 2026, American rating agency, Moody’s Ratings released its latest ‘Credit Opinion Report on India’, lowering India’s Gross Domestic Product (GDP) growth forecast for Financial Year 2026-27(FY27) by 80 basis points to 6%, down from its earlier estimate of 6.8%.
Key Findings:
Growth Trend: Moody’s noted that India’s GDP growth remained strong at 7.5% in Calendar Year 2025(CY25), up from 7.2% in CY24, driven by a rebound in the manufacturing sector.
Inflation: The rating has also projected inflation to average at 4.8% in FY27 from 2.4% in FY26.
Fiscal Indicators: The report highlighted India’s Current Account Deficit (CAD) narrowed to nearly 0.4% of GDP in CY25 over 0.9% (in CY24).

• The report further estimated India’s CAD to remain around 1-1.5% of GDP in CY26 and CY27.