With reference to Moody's Ratings forecast for India's FY 2026-27 growth, consider the following statements: 1. The growth forecast was revised upward to 7 per cent. 2. The previous growth forecast by the agency was 6.5 per cent. 3. The agency identified household consumption as a primary driver of economic momentum. Which of the statements given above is/are correct?

Moody's Ratings expects Indian economy to grow at 7 per cent in current fiscal

GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Prelims· 11 November 2026

Economic momentum and energy resilience: a key GS3 topic on India's macroeconomic stability.

Why in news

Moody's Ratings revised India's FY 2026-27 growth forecast upward to 7 per cent from 6.5 per cent due to economic momentum and energy resilience.

Background

Moody's Ratings issued the revision on Wednesday, citing broad-based economic momentum and resilience against energy supply shocks. The agency noted that household consumption remains a vulnerability due to price pressures.

Facts for Prelims

FactMoody's Ratings revised India's FY 2026-27 growth forecast to 7 per cent.
FactPrevious growth forecast by Moody's for FY 2026-27 was 6.5 per cent.
FactGrowth drivers identified by Moody's include broad-based economic momentum and energy supply shock resilience.

Prelims practice question

With reference to Moody's Ratings forecast for India's FY 2026-27 growth, consider the following statements:

The growth forecast was revised upward to 7 per cent.
The previous growth forecast by the agency was 6.5 per cent.
The agency identified household consumption as a primary driver of economic momentum.

Which of the statements given above is/are correct?

(a)2 only
(b)3 only
(c)1 and 2 only
(d)1 and 3 only

Show answer

Answer: (c) 1 and 2 only — Statements 1 and 2 are correct. Statement 3 is incorrect: The agency noted household consumption remains a vulnerability due to price pressures.

For Mains

Q. Analyze the factors contributing to India's sustained economic momentum despite global energy supply shocks and rising price pressures on household consumption.

Dimensions to cover in your answer

Consumption vulnerability: Impact of persistent price pressures on rural and urban household purchasing power
Resilience factors: Effectiveness of energy diversification and supply chain stability in sustaining GDP growth

Keywords: Economic Momentum · Growth Forecast · Price Pressure · Energy Resilience · Household Consumption

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