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Moody's cuts India's FY27 GDP growth estimates to 6% amid West Asia conflict
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Moody's cuts India's FY27 GDP growth estimates to 6% amid West Asia conflict

Moody's Ratings has cut India’s GDP growth forecast for FY2026 to 2027 to 6% from 6.8%, citing risks from the ongoing West Asia conflict. The report highlights that disruptions especially in LPG supplies could cause household shortages, raise fuel and transport costs, and push up food inflation due to India’s dependence on imported fertilisers. The region supplies about 55% of India’s crude oil and over 90% of LPG imports, making the economy vulnerable to geopolitical shocks.

Although inflation is currently under control, Moody’s warns that risks are rising and projects inflation to average 4.8% in FY27, up from 2.4% in FY26. Growth moderation is expected to stem from weaker private consumption, slower industrial activity, and reduced investment momentum amid higher input costs. In response, interest rates may remain steady or increase gradually depending on how long the geopolitical tensions persist.

https://www.thehindu.com/business/Economy/moodys-cuts-indias-fy27-gdp-growth-estimates-to-6-amid-west-asia-conflict/article70826050.ece

u/Tris_Memba — 6 hours ago