Moody's has estimated India's GDP growth to cross 6.5% during fiscal year 2026, representing one of the highest rates of growth amongst large economies across the world. It is inspired by higher government capital spending, taxation relief, and monetary leniency. Union Budget 2025-26 brought great relief in taxation, and that is certain to increase consumption as well as aggregate economic growth. After a brief deceleration, India's economic growth is expected to reaccelerate, with the help of supportive government policies. Moody's also has a stable outlook for India's banking system, despite possible stress in some loan segments. This growth projection reflects India's resilience and ability to achieve consistent economic performance in the face of global headwinds.
Source: Economic Times