India's real GDP to grow 6.4% in FY27: Moody's
- IBEF
- February 10, 2026
Moody’s outlook for the Indian economy shows that it is projected to continue to be one of the top growing economies in the world through at least 2026-27, with real GDP growth projected at 6.4% for 2026-27, making it the fastest growing economy of G-20 countries. Factors contributing to this growth include support from domestic demand, increasing levels of investment activity, and overall macroeconomic strength. Structural reforms such as the rationalisation of Goods and Services Tax (GST) and income tax cuts will provide additional support to domestic consumption, while a stable monetary policy will keep financial conditions supportive.
India's economic resilience will contribute to both financial stability and increased credit demand throughout various sectors of the economy, according to the report. Banks will have sufficient capital buffers through their own earnings, while continuing to expand credit to support economic activity. Although the Economic Survey 2026 had anticipated a higher growth range of between 6.8% and 7.2% from 2026-27, the Reserve Bank of India (RBI) has since revised its preliminary forecast of 7.0%, which is higher than Moody's 6.4% estimate but confirms that the operating environment remains strong. The recent interim trade agreement between India and the United States is also expected to significantly improve the business environment for Micro, Small, and Medium Enterprises (MSMEs), particularly those that are export-oriented, by opening new market avenues and reducing cross-border trade barriers.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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