India Growth ForecastImage Credit source: AI
India is currently the brightest star in the global economy. This is not being said only in India. In fact, other agencies of the world are also putting their seal of approval on this. According to a report by Moody’s, India’s GDP in the next financial year 2027 may be the highest among G20 countries. G20 is one of the most powerful groups in the world. Which also includes China, America and European Union. The countries included in this group have more than 85 percent share in the global GDP. If this estimate turns out to be correct, then India can be included in the top 3 largest economies of the world in the next few years. Let us also tell you what projections Moody’s has made regarding India’s growth, which has shaken the world’s biggest countries.
Moody’s estimates
Rating agency Moody’s Ratings said in a report on Monday that India’s gross domestic product (GDP) growth rate is expected to be 6.4 percent in the coming financial year. It will grow the fastest among the G-20 economies on the back of strong domestic consumption, policy measures and a stable banking system. Moody’s said in its Banking System Outlook report that asset quality will remain strong. However, some pressure may be seen in micro, small and medium enterprises (MSME). Despite this, banks have sufficient reserves to absorb loan losses. The rating agency said the operating environment for banks will remain strong in 2026, supported by strong macroeconomic conditions and structural reforms.
what did moodys say
Moody’s said that we estimate that India’s real GDP growth rate will be 6.4 percent in the financial year 2026-27, which will be the fastest among G-20 economies due to strong domestic consumption and policy measures. The rating agency said that the reform of Goods and Services Tax (GST) in September 2025 and increasing the personal income tax limit before that will improve the affordability of consumers and support consumption-based growth. This estimate of Moody’s for the financial year 2026-27 is less than the range of 6.8-7.2 percent expressed in the economic review of the Finance Ministry. According to official estimates, India’s growth rate in the current financial year (2025-26) is likely to be 7.4 percent, which is higher than 6.5 percent recorded in 2024-25.
power in the banking system
Moody’s said that with inflation under control and growth momentum remaining strong, it expects the Reserve Bank of India to further ease monetary policy in 2026-27 only when there are signs of slowdown in economic activity. The Reserve Bank of India (RBI) has reduced its policy rate by a total of 1.25 percent to 5.25 percent in 2025. According to Moody’s, loan growth in the entire banking system may increase marginally to 11-13 percent in the financial year 2026-27, which has been 10.6 percent so far in the financial year 2025-26.