Moody's cuts India's FY27 GDP growth estimates to 6% amid West Asia conflict
Moody's has cut India's FY27 GDP growth estimates to 6% due to the ongoing conflict in West Asia, which is expected to moderate growth momentum and raise inflation risks. The conflict has led to higher fuel and transport costs, and spillovers to food inflation, with inflation projected to average 4.8% in FY27.
Moody's Ratings has slashed India's economic growth estimates for the current fiscal to 6%. The ongoing conflict in West Asia will moderate growth momentum and raise inflation risks. India relies heavily on imported crude oil and LPG from the region. The conflict has led to higher fuel and transport costs, and spillovers to food inflation. Moody's expects inflation to average 4.8% in FY27, up from 2.4% in FY26. The growth slowdown is driven by subdued private consumption, softer industrial activity, and a weakening in the momentum of gross fixed capital formation.
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