By Admin 
Moody’s on India GDP Growth: India is continuously proving itself as a fast growing economy. At the global level, when many big economies are struggling with slowdown and uncertainties, the Indian economy has performed strongly. The government has set a target of becoming a ‘developed India’ by 2047 and meanwhile, global rating agency Moody’s has presented an important estimate regarding India’s economic growth, which has further strengthened the country’s growth story.
According to Moody’s Ratings, India’s real gross domestic product (GDP) growth rate is estimated to be 6.4 percent in the upcoming financial year 2026-27. The agency says that India will remain the fastest growing economy among the G-20 countries on the basis of strong domestic consumption, policy support and stable banking system.
Economy leaping amid challenges
Moody’s also said in its Banking System Outlook report that asset quality will remain strong overall, although micro-small and medium enterprises (MSMEs) may see some pressure. Despite this, banks have sufficient buffers to deal with possible loan losses.
The rating agency believes that due to strong macroeconomic conditions and structural reforms, the operating environment for banks will remain positive in 2026-27. Moody’s clarified that India’s growth will be faster than other major economies due to strong domestic consumption and government policy initiatives. However, this estimate is slightly lower than the range of 6.8 to 7.2 percent expressed in the economic review of the Finance Ministry.
inflation under control
Moody’s also said that the increase in personal income tax threshold before the implementation of GST in September 2025 has improved the purchasing power of consumers and will further support consumption-led growth. According to official estimates, India’s growth rate in the current financial year 2025-26 may be 7.4 percent, which is higher than 6.5 percent recorded in 2024-25.
There is a picture of relief on the inflation front also. According to Moody’s, if inflation remains under control and economic growth remains strong, the Reserve Bank of India will further relax the monetary policy only when signs of slowdown in the economy become clear.
It is noteworthy that RBI has reduced the policy interest rate by a total of 1.25 percent to 5.25 percent during 2025. Along with this, Moody’s estimates that the credit growth in the entire banking system may increase in the range of 11 to 13 percent in 2026-27, whereas in 2025-26 so far it has been recorded at 10.6 percent.