Moody’s raises India GDP growth forecast to 7% for current fiscal | Economy & Policy News

Credit ratings agency Moody’s on Friday raised India’s real ​GDP growth forecast to 7% ​from 6% for the current fiscal, ‌citing its resilience amid the West Asia conflict.

“Although we continue to expect India to grow faster than all other G-20 economies, as well as similarly rated emerging market sovereigns, risks remain”, it said.

The agency said elevated energy prices and ‌El Niño-related food price pressures pose risks to inflation, consumption and growth.

Moody’s said India’s fiscal policy response to the West Asia shock had been muted, but warned that higher ​global energy prices could increase subsidy spending and pressure the ‌government to provide additional support, while rising defence and ​infrastructure ‌spending could constrain fiscal consolidation.

India’s economy grew 7.8% ‌in the April-June quarter, government data showed last month, comfortably beating ‌expectations as ​a surge ​in investment and manufacturing activity offset weakness in mining and consumer-facing services.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)