Moody’s Projects India as G-20’s Fastest-Growing Economy

India is set to maintain its position as the fastest-growing economy in the G-20, according to Moody’s latest global outlook. The agency expects strong domestic demand, stable monetary conditions and resilient exports to support growth through 2027.

India’s Growth Path Through 2025–27

Moody’s forecasts India’s GDP to rise 7 per cent in 2025, followed by 6.4 per cent in 2026 and 6.5 per cent in 2027. The momentum is driven by sustained consumption, increased infrastructure spending and continued diversification of export markets.

Resilience Amid Global Headwinds

The rating agency noted India’s ability to navigate international pressures, including higher US tariffs on selected products. Exporters successfully redirected shipments, helping overall exports grow despite a decline in goods sent to the United States.

Policy Support and Financial Conditions

A neutral-to-easy monetary stance, supported by the RBI’s steady repo rate and stable inflation, has ensured favourable domestic conditions. Strong capital inflows and upbeat investor sentiment have helped absorb external shocks and preserved liquidity.

Exam Oriented Facts

• Moody’s expects India’s GDP growth at 7% in 2025.
• India is projected to remain the fastest-growing G-20 economy through 2027.
• RBI maintained a steady repo rate, supporting a neutral-to-easy policy stance.
• India’s exports rose 6.75% in September despite tariff-related challenges.

Global Outlook and Comparative Trends

Moody’s expects global GDP to remain in the 2.5–2.6 per cent range in 2026 and 2027. Advanced economies may grow close to 1.5 per cent, while emerging markets could expand around 4 per cent. The United States is likely to see stable but moderating growth, Europe’s prospects have improved due to supportive policies, and China’s growth is set to ease gradually following stimulus-driven expansion.