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India To Remain G-20’s Fastest-Growing Economy, Says Moody’s; GDP Seen At 7% In 2025

Posted By: Vishal Maurya Posted On: Nov 14, 2025Share Article
India To Remain G-20’s Fastest-Growing Economy
Moody's Sees Strong Growth Ahead for India; Export Diversification Offsets US Tariffs

India To Remain G-20’s Fastest-Growing Economy, Says Moody’s; GDP Seen At 7% In 2025

Moody's Ratings in its Global Macro Outlook 2026-27 report projected that India's GDP growth will grow at 7 per cent in 2025, 6.4 per cent in 2026 and 6.5 per cent in 2027, driven by strong domestic demand, robust infrastructure investment and export diversification. It also noted that India's economy will remain the fastest-growing economy among the G-20 nations over the next two years.

The report said that India's economic performance has shown resilience despite global headwinds and high US tariffs on certain exports. It noted that Indian exporters were successful in redirecting exports despite facing 50% US tariffs on certain goods. “its overall exports climbed 6.75% in September even as shipments to the U.S. dropped 11.9%," the report said.

The agency underlined that neutral-to-easy monetary policy stance, as RBI held its repo rate steady in October and low inflation kept the domestic conditions supportive of growth.

Moody's noted that external shocks and liquidity were managed because of strong international capital inflows amid the positive investor sentiment.

Moody's said that while India's domestic demand continues to drive growth, private companies are still cautious about committing to large investment plans.

For the world economy, Moody's expects GDP growth to stay in the 2.5%–2.6% range in 2026 and 2027. The pace will vary across regions: advanced economies are likely to grow around 1.5%, while emerging markets — with India at the front — could expand close to 4%. The agency said shifting trade patterns, policy differences and geopolitical changes will shape a “steady but uneven" global recovery.

In the United States, growth is slowing but remains stable, supported by moderate consumer spending and rising investment in AI. Moody's said financial conditions remain favourable thanks to strong equity markets, tight credit spreads and healthy liquidity. It added that fiscal support and easier monetary and regulatory policies may keep the U.S. credit cycle going into 2026, even though risks could build as the cycle gets older.

In Europe, the outlook has slightly improved. Moody's cited stronger job markets, steady wages and the European Central Bank's policy easing as key support factors. Public spending on infrastructure, green technology, and Germany's renewed focus on defence and capital projects are also expected to lift growth.

Meanwhile, China is set to grow about 5% in 2025, driven by government support measures and firm export activity, Moody's said. But domestic demand remains patchy, with inconsistent consumption trends, weak corporate lending and falling fixed investment. The agency expects China's growth to gradually ease to 4.2% by 2027.

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