Moody’s latest global outlook reaffirms India’s position as the fastest-growing economy in the G-20 , projecting sustained momentum driven by robust domestic demand, stable macroeconomic conditions and resilient export performance. The agency expects India to outperform both advanced and emerging market peers through 2027 , despite continuing global uncertainties.

Growth Momentum Through 2025–27

According to Moody’s, India’s GDP is expected to expand by 7% in 2025 , followed by 6.4% in 2026 and 6.5% in 2027 . This growth trajectory is supported by strong private consumption, increased infrastructure spending, rising manufacturing capacity and diversification in export markets. Continued reforms and public capital expenditure are expected to sustain long-term productivity gains.

Resilience Amid Global Challenges

Moody’s highlighted India’s ability to weather international disruptions, including higher US tariffs on select products. Exporters successfully redirected trade flows, resulting in a 6.75% increase in exports in September , even as shipments to the United States declined. This adaptability has helped maintain India’s external sector stability.

Policy Environment and Financial Conditions

A neutral-to-easy monetary policy stance , backed by the Reserve Bank of India’s maintained repo rate and controlled inflation, has supported favourable borrowing conditions. Strong capital inflows, improved market confidence and stable liquidity levels have enabled India to absorb external shocks while maintaining investment momentum.

Global Growth Context

Moody’s expects global GDP growth to hover around 2.5–2.6% in 2026 and 2027. Advanced economies may expand at about 1.5% , driven by steady but moderate US growth and improved conditions in Europe. Emerging markets are projected to grow around 4% , with China’s growth expected to slow gradually following stimulus-backed expansion.

Exam Points

• India’s GDP growth forecast: 7% (2025) , 6.4% (2026) , 6.5% (2027) .

• India remains G-20’s fastest-growing economy through 2027.

• Exports grew 6.75% in September , despite tariff challenges.

• RBI maintains a steady repo rate , supporting neutral-to-easy policy.

• Moody’s global GDP outlook: 2.5–2.6% in 2026–27.