Moody's Ratings on Monday projected India's GDP to grow at 6.4 per cent in the next fiscal, the fastest pace among G-20 economies, driven by strong domestic consumption, policy measures, and a stable banking system. In its banking system outlook report, Moody's said their asset quality will remain resilient, with some stress among micro, small and medium enterprises (MSMEs). Regardless, banks have sufficient reserves to absorb loan losses, it said. The operating environment for banks will remain strong in 2026, supported by robust macroeconomic conditions and structural reforms, it said. "We forecast India's real GDP will grow 6.4 per cent for fiscal 2026-27, the fastest pace among G-20 economies, driven by strong domestic consumption and policy measures. "The rationalization of the goods and services tax (GST) in September 2025 and an earlier increase in personal income tax thresholds will help improve affordability for consumers and support consumption-led growth," Moody's said.
The RBI's MPC held rates steady, citing improved growth and benign inflation, while announcing regulatory steps to boost credit flow and strengthen digital payment safety
Inflation risks may prove to be broader than what that explanation implies
Economists say the India-US trade deal could lift FY27 GDP growth by 20-40 basis points by boosting exports and reducing uncertainty, though risks from imports remain
For the private sector, the real story lies in the de-risking of the Indian investment landscape
The proposals announced on Sunday imply a dual approach: A strategic arc that will continue to pave the path for faster potential growth, and a tactical arc of facilitations and reliefs
From a capital markets perspective, the Budget's proposals to deepen the corporate bond market clearly stand out
Experts say announcements focus on sustenance of growth, resilience
FM Sitharaman tightens fiscal deficit target at 4.3% of GDP
Fiscal deficit targets stay on track and projections look realistic, but the Budget avoids big reforms on Customs tariffs and tax structure, offering mainly incremental changes
India must also remain deeply integrated with global markets, exporting more and attracting stable long-term investment
Challenge lies in identifying new sources of growth to sustain an accelerated trajectory, says Poonam Gupta
Economic Survey 2025-26 underscores India's macro stability, reform-led growth, and fiscal discipline, while warning that weak state finances pose emerging risks
Economic Survey projections and Budget assumptions on GDP growth have often missed the mark, with actual growth diverging from estimates in several years
Tripling India's exports by 2035 needs tiger-like performance, open markets and ruthless reform-conditions history suggests India does not yet have
India's revamped quarterly GDP series will use GST, e-Vahan and gas consumption data, adopting IMF-recommended methods to improve accuracy and reduce volatility
Fiscal restraint and policy stability are key for a pivot from consumption to investment led growth
The IMF has reaffirmed India's position as the fastest-growing major economy, with its 2025-26 forecast revised to 7.3 per cent
The forthcoming Budget could think of maintaining public capital expenditure at 3% so that domestic resources are available for private investments
An RBI report places Assam as India's fastest-growing state over five years, driven by fiscal discipline, infrastructure spending and administrative reform rather than a low-base rebound