# Moody's has made a steep cut of 0.8 percentage points to India’s economic growth forecast for 2026.

*business · news · 2026-05-12 · Free Press Journal*

## Key points

- Moody's cut India's 2026 growth forecast from 6.5% to 6% due to global uncertainties.
- Moody's report cites prolonged US-Iran tensions and weak external demand as key downgrade factors.
- The downgrade reflects anticipated losses in exports, manufacturing, and business investment for India.
- Rising oil prices are contributing to increased inflationary pressures, risking further GDP growth reduction.
- Moody's emphasized that fiscal discipline and inflation control are now particularly crucial for India's outlook.

**Countries:** India, United States, Iran

[Read the full story on Free Press Journal](https://www.freepressjournal.in/business/moodys-cuts-indias-2026-growth-forecast-to-6-as-global-headwinds-pose-threat)

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