Moody’s Ratings on Indian Economy: American rating agency Moody’s in its latest Global Macro Outlook Report It has been said that India’s economy will grow at a speed of 7 percent in the year 2025 and then at a speed of 6.5 percent in the next year 2026. The rating agency said India’s economic growth is being driven by increasing investment in infrastructure and strong domestic consumption, although the private sector is still cautious in terms of capital expenditure (Capex).

India will remain the fastest growing economy

Moody’s said that India will remain the fastest growing economy among the G-20 countries in the coming years. The agency expects India’s growth rate to average 6.5% through 2027, supported by domestic demand and export diversification.

GDP estimates and global comparison

• GDP growth in 2024: 6.7%
  
• Projected GDP growth in 2025: 7%
  
• Estimate in 2026-2027: around 6.5%
  

According to Moody’s, this growth will be possible due to low inflation and neutral to accommodative monetary policy stance. For China, Moody’s has estimated that its economy will grow at a rate of 5% in 2025, but it may decline to 4.2% by 2027. At the same time, the GDP growth rate at the global level is estimated to be between 2.9% in 2024, 2.6% in 2025 and 2.5% to 2.6% in 2026-27.

Export and trade improvement

Moody’s reported that some Indian exporters facing US tariffs (50%) have succeeded in redirecting their exports. India’s total exports increased by 6.75% in September 2025, although exports to America recorded a decline of 11.9%.

According to Moody’s, India’s economic growth is structurally strong. Government infrastructure spending, consumption boom and stable monetary policy will keep India a key engine of global growth in the coming years.

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