India’s GDP growth rate will remain strong.
Indian Economy Growth: There may be a slowdown in the economies around the world, but India’s momentum is going to continue. Well-known rating agency Moody’s has released its ‘Global Macro Outlook 2026-27’ report, in which there is great news for India. The report clearly says that India will remain the fastest growing economy among the G-20 countries in the next two years (till 2027) and its growth rate is estimated to be 6.5%. Even the storm of huge tariffs imposed by America has not been able to stop India’s pace.
What is the secret of India’s strength?
According to Moody’s, this strength of India is not baseless. Strong infrastructure investment in the country, good consumer demand in the markets and diversification in exports are giving it strength.
According to the report, even when America imposed heavy tariffs of up to 50% on some Indian products, Indian exporters showed wisdom and found new markets. Even though exports to America fell by 11.9%, India’s total exports increased by 6.75% in September. Meaning the Indian economy is no longer as dependent on any one country as before.
RBI’s smart move
The country’s internal policies are also playing a big role in this progress. Moody’s said that the monetary policy of the Reserve Bank (RBI) is tight. Inflation is under control, hence RBI did not change the repo rate even in October, which creates a good environment for growth.
Apart from this, the confidence of foreign investors in India has strengthened. Money (capital inflow) coming from international markets is helping the country to absorb any external shock and there is liquidity in the market. However, the report also said that while domestic demand is strong, the private sector is still a bit hesitant in making new investments on a large scale.
Know the condition of the world also
If we talk about the entire world, Moody’s estimates that global GDP growth will be around 2.5% in 2026-27. In this, emerging markets like India will remain strong (about 4%) while developed countries (advanced economies) will grow at a slow pace of 1.5%.
- America: The pace there is slow, but steady. Investment in AI and customer spending are supporting it.
- Europe: There is slight improvement there too. Germany is increasing spending on defense and green technology, which is expected to help growth.
- China: China can achieve 5% growth in 2025, but this is based on government support and exports. Demand within the country is weak and investment is declining. Moody’s estimates that China’s growth will slow to 4.2% by 2027.