Moody’s Ratings on Thursday projected India’s economy to expand by 7% in 2025 and 6.5% in 2026, citing strong domestic demand, export diversification, and a supportive monetary policy stance.

In its Global Macro Outlook, Moody’s said India’s growth is being driven by robust infrastructure investment and steady consumption, though private sector capital spending remains relatively cautious.

The agency added that India — the fastest-growing economy in the G20 — is expected to maintain an average growth rate of 6.5% through 2027, underpinned by ongoing diversification in both domestic and external sectors. The 2025 real GDP growth forecast of 7% marks an improvement from 6.7% estimated for 2024.