India to Remain Fastest-Growing G-20 Economy in FY27: Moody’s

New Delhi: Moody’s Ratings has projected that India’s real Gross Domestic Product (GDP) will grow by about 6.4 per cent in the financial year 2026–27 (FY27), retaining its status as the fastest-growing economy among G-20 nations.

In its latest assessment, the rating agency said the outlook is supported by strong domestic consumption, supportive government policies and a stable macroeconomic environment, which together are expected to sustain growth momentum. Measures such as tax reforms and continued public investment are likely to boost demand, while controlled inflation and improving credit conditions should further aid economic activity.

Moody’s also highlighted the resilience of India’s banking sector, noting that asset quality remains healthy, capital buffers are adequate and banks are well positioned to absorb potential stress, even as selective pressure persists in segments such as micro, small and medium enterprises (MSMEs).

While the projection is marginally lower than official government estimates, it underscores India’s relative economic strength at a time when several major global economies are experiencing slower growth, reinforcing investor confidence in the country’s medium-term growth prospects.

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