India's Economy Shows Resilience Amid Global Shocks

(MENAFN- IANS) New Delhi, Oct 15 (IANS) There is an increasing recognition of India's growth momentum and the country's resilience to withstand a challenging global economic environment. This is reflected in the recent rise in India's growth forecast by OECD, S&P Global, Fitch Ratings, the Asian Development Bank (ADB), and Moody's Ratings, according to a report in Greek news website Directus.

The OECD has raised its forecast for India's GDP growth from 6.3 per cent to 7.1 per cent, while S&P Global has revised its projection from 6.6 per cent to 7 per cent. Fitch Ratings has increased its forecast from 6.4 per cent to 6.9 per cent, ADB from 6.6 per cent to 7 per cent, and Moody's Ratings from 6 per cent to 7 per cent.

These revisions coincide with evidence of strengthening domestic economic activity across several key components of GDP. India's growth story is increasingly supported by multiple engines rather than by a single sector or source of demand. India's real GDP growth reflects a strong post-pandemic recovery and sustained momentum.

The latest quarterly performance helps explain the more positive external assessment of India. Real GDP growth accelerated to 7.8 per cent in Q1 FY2026-27, compared with 6.9 per cent in Q1 FY2025-26.

The report highlights that one of the most important pillars of India's resilience is the continued strength of the services sector. Tertiary-sector growth accelerated to 10 per cent, up from 8 per cent the previous year. Within services, financial, real estate, IT and professional services grew by 12.1 per cent, making them the strongest major segment identified in the report. Trade, hotels, transport, communication and related services expanded by 8.5 per cent, while public administration, defence and other services grew by 7.5 per cent.

IT and professional services connect India to international markets, while financial and business services increasingly support domestic investment and enterprise activity. The continued expansion of these segments therefore provides both domestic momentum and an important external link, the report states.

It also underscores that India's resilience is increasingly supported by the industrial sector. The secondary sector grew by 8.6 per cent, substantially faster than the 6.1 per cent recorded a year earlier.

A combination of manufacturing, construction, and infrastructure-related activity can strengthen productive capacity, employment opportunities, and domestic supply chains. It also suggests that India's economic expansion is becoming more diversified. Strong services growth is complemented by industrial activity, thereby reducing dependence on any single sector, the report added.

MENAFN15102026000231011071ID1111813269