Moody’s Ratings delivers bullish news for India’s economy, estimating 6.4 percent real GDP growth in financial year 2026-27, outstripping all other G20 economies. The forecast hinges on enduring domestic consumption strength and enabling policy measures.
The firm’s analysis commends the banking sector’s stable outlook and adequate reserves for impaired loans, signaling financial sector reliability.
Consumer momentum has gained from GST easing in September 2025 and prior income tax slashes, amplifying purchasing power and driving demand across sectors.
RBI policy will remain measured, with rate cuts contingent on tangible weakness in growth indicators, aided by manageable inflation that preserves options.
Loan books are set to expand by 11.13 percent in FY27, building on 10.6 percent this year, thanks to large firms’ solid finances and earnings. Recovery efforts on resolved loans will likely decelerate.
Positioned below official estimates of 6.8-7.2 percent but in line with 7.4 percent for the ongoing year, this projection highlights India’s competitive edge. As global headwinds persist, India’s growth narrative offers a beacon of optimism.