New Delhi:Moody's Ratings on Wednesday said the Indian economy is expected to grow at 7 per cent in the current fiscal compared to 6.5 per cent pegged earlier, aided by robust consumption, improving investment dynamics and strong macroeconomic fundamentals. In its Global Macro Outlook 2027-28, Moody's, however, said that near-term risks to growth persist as household consumption remains vulnerable to "intensifying and broadening price pressures", with headline inflation close to the upper end of the RBI's inflation target range, while a deficient monsoon and El Nino conditions weigh on agricultural output and rural demand. Retail inflation rose to 5.54 per cent in September 2026. "India's broad-based economic momentum and demonstrated resilience to the energy supply shock warrant upward revisions to our 2026-27 growth forecasts to 7 per cent from 6.5 per cent," it said.

RBI estimates GDP growth of 7.1 per cent in the current fiscal, in line with OECD projection. The International Monetary Fund (IMF), ADB and S&P Global Ratings have projected a 7 per cent growth, while Fitch Ratings expects India's GDP to grow 6.9 per cent.

Moody's said robust consumption, improving investment dynamics and strong macroeconomic fundamentals imply that the economy appears well positioned to sustain growth near 7 per cent over the medium term.