In a testament to its economic vitality, Moody’s Ratings has upgraded its forecast for India’s real GDP growth to 6.4 percent in FY 2026-27, the highest among G20 countries. Strong internal consumption patterns and favorable policy frameworks are the key drivers behind this impressive trajectory.
India’s banks are in prime health, with a positive sector outlook and robust buffers against non-performing loans. This solidity underpins the broader economic framework.
Fiscal incentives like the September 2025 GST moderation and preceding tax relief have supercharged consumer confidence, leading to heightened spending and economic vibrancy.
The RBI’s strategy will likely prioritize vigilance, easing rates only in response to evident slowdowns, bolstered by tame inflationary pressures that afford strategic leeway.
Projections indicate credit growth climbing to 11.13 percent next fiscal year from 10.6 percent currently, supported by corporate giants’ fortified financial positions and profitability. Post-resolution, the pace of bad loan recoveries is expected to ease.
Diverging somewhat from the Economic Survey’s 6.8-7.2 percent band, Moody’s view complements the anticipated 7.4 percent expansion this year. India’s ascent as a global economic powerhouse shows no signs of abating, drawing international attention and investment.