Moody’s Ratings has cut India’s 2026 GDP growth forecast to 6%, lowering it by 0.8 percentage points. The agency cites weak private consumption, slower capital formation and industrial activity, plus higher energy costs. Moody’s also pegged 2027 growth at 6%, down from earlier estimates, warning that global and domestic pressures continue to weigh on momentum.
Moody’s says India is positioned as one of the more resilient emerging markets to handle global shocks, pointing to stable monetary policy, inflation expectations that stay anchored, and exchange rates that can adjust. It also flags contained currency depreciation and limited credit spread widening versus more vulnerable peers, while noting higher debt remains a constraint despite ongoing reforms and buffers.
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Moody’s Ratings notes that since the global shock wave that began in 2020, India has risen to the top among developing markets. The analysis says India’s growth path is stronger than peers such as Mexico and Brazil, driven by proactive policy reforms and a resilient financial safety net that helped protect market access and steady the currency.
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