India’s economy has proved more resilient to the shock from the Middle East conflict than Moody’s Ratings had expected, prompting the ratings agency to sharply raise its forecast for real GDP growth in 2026-27 to 7% from 6% previously. The upgrade, announced in Moody’s periodic review of India on Friday, was driven by stronger private consumption, robust gross fixed capital formation, continued public infrastructure spending, signs of a revival in private investment and sustained strength in services.