Moody’s Ratings pegs India’s growth at 7% for 2025, 6.5% for next year
New Delhi: Moody’s Ratings on Thursday projected India’s economy to grow at 7 per cent in 2025 and 6.5 per cent in the next year, supported by domestic and export diversification, amid a neutral-to-easy monetary policy stance.
Moody’s in its Global Macro Outlook said India’s economic growth is supported by robust infrastructure spending and solid consumption, although the private sector remains cautious about business capital spending.
Moody’s said it expects India – the fastest-growing G-20 economy – will grow at 6.5 per cent through 2027, supported by domestic and export diversification.
Real GDP growth for 2025 calendar year is pegged at 7 per cent, higher than 6.7 per cent in 2024.
Indian exporters, facing 50 per cent US tariffs on some products, have succeeded in redirecting exports, its overall exports climbed 6.75 per cent in September even as shipments to the US dropped 11.9 per cent.
“We expect its economy to continue to grow around 6.5 per cent in 2026 and 2027, supported by a neutral-to-easy monetary policy stance amid low inflation,” Moody’s
added.
International capital flows because of positive international investor sentiment have buffered external shocks, it noted.
On global growth, Moody’s said it will likely remain steady but subdued with advanced economies growing modestly and emerging markets mostly maintaining stronger momentum.
On trade, the possibility of China and the US decoupling has increased with rising restrictions and uncertainty, but other major economies could continue to strengthen their relationships.
Outlooks vary widely across G-20 economies, it added.
For China, Moody’s projected the economy to grow 5 per cent in 2025, supported by government stimulus and strong exports, but expects real GDP growth to gradually slow to 4.2 per cent by 2027.
“Global real GDP growth will likely hover between 2.5 and 2.6 per cent in 2026 and 2027, down from 2.6 per cent in 2025 and 2.9 per cent in 2024,” Moody’s Said. PTI
