India's GDP growth projected to surpass 6.5% in FY26: Moody's Ratings

India’s real GDP growth is projected to surpass 6.5 per cent in FY26 compared to 6.3 per cent in FY25 backed by higher government capital expenditure and a boost in consumption from tax cuts for middle-class income groups and reduction in interest rates, according to Moody’s Ratings. Moody’s expects India’s average inflation rate to decline to 4.5 per cent in FY26 from 4.8 per cent in FY25.

Mar 17, 2025 - 07:11
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India's GDP growth projected to surpass 6.5% in FY26: Moody's Ratings
India’s real GDP growth is projected to surpass 6.5 per cent in FY26 compared to 6.3 per cent in FY25 backed by higher government capital expenditure and a boost in consumption from tax cuts for middle-class income groups and reduction in interest rates, according to Moody’s Ratings. Moody’s expects India’s average inflation rate to decline to 4.5 per cent in FY26 from 4.8 per cent in FY25.