Archive · 13 Nov 2025
Moody's Projects India to Lead Global Growth with 7.0% GDP Surge in 2025
Imagine the world's economy is like a big race, and some countries are running slower than before.
But one runner, India, is expected to sprint ahead and be the fastest among the major economies.
Moody's, a company that analyzes economies, predicts India's economy will grow a lot, with 7% growth in 2025, and then around 6.5% in the next couple of years.
This is because Indians are spending money on things like new roads and buildings, and people are buying more goods.
Even though some countries are having trade problems, India is making good deals with other countries to sell its products.
Also, the Reserve Bank of India, which is like the country's money manager, is keeping a steady hand on interest rates because the economy is doing well and prices are not going up too fast.
Moody's Ratings forecasts India to be the fastest-growing major economy from 2026-2027.
Projected real GDP growth rates are 7.0% in 2025, 6.4% in 2026, and 6.5% in 2027.
Inflation is expected to align with the RBI's target of 4.0% by 2027.
Growth drivers include strong infrastructure investment, steady consumer spending, and export diversification.
The Reserve Bank of India is maintaining a stable monetary policy due to strong domestic fundamentals and subdued inflation.
- Who
- Moody's Ratings
- What
- Projects India to be the fastest-growing major economy with significant GDP growth and anchored inflation.
- When
- 2025-2027
- Where
- India
- Why
- Driven by robust domestic factors, infrastructure investment, steady consumer spending, and strategic trade positioning amid a slowing global economy.
Global Economic Outlook
India's Economic Outlook
Growth Trajectory
Global Economic Outlook
Global growth presents a mixed picture, with a general slowdown anticipated.
India's Economic Outlook
India is projected to be the fastest-growing major economy, with strong domestic momentum and strategic global positioning.
Trade Environment
Global Economic Outlook
The global trade landscape is characterized by rising restrictions and economic decoupling between major economies like the US and China.
India's Economic Outlook
India is actively deepening its bilateral and regional trade relationships and has shown export resilience despite specific trade challenges.
- Projected GDP Growth (2025)
- 7.0%
- Projected GDP Growth (2026)
- 6.4%
- Projected GDP Growth (2027)
- 6.5%
- Projected Inflation (2027)
- 4.0%
- Driving Factors
- Infrastructure investment, consumer spending, domestic momentum, export diversification
- Monetary Policy Stance (RBI)
- Holding steady on repo rate, cautious due to strong domestic outlook and subdued inflation
- Issuing Body
- Moody's Ratings
Sources
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