Moody's cuts India's GDP growth outlook to 6% for 2026-27
Business
Moody's just trimmed India's gross domestic product (GDP) growth outlook for both 2026 and 2027, now expecting only 6% growth each year.
The downgrade comes as private spending, investment, and industrial activity slow down, with high energy costs and global economic pressures adding to the mix.
India's energy import reliance risks inflation
India relies on imports for about 90% of its energy needs, which makes it extra sensitive to rising global prices.
Moody's warns that if energy stays expensive, India could see higher inflation, less business investment, tighter government budgets, and even pricier fuel and fertilizer.
Plus, India remains vulnerable to global supply chain hiccups.