Archive · 13 Nov 2025
Moody's Projects India to Remain Fastest-Growing Major Economy at 6.5% Through 2027
Imagine the world's economies are like different types of runners in a big race.
India is like a super-fast runner who is expected to keep winning the race for the next few years, growing by about 6.5% each year until 2027.
This is because people in India are buying a lot of things, the government is building new roads and buildings, and Indian companies are finding new places to sell their products, even when facing challenges like tariffs from the US.
Even though some of their sales to the US are down, they are sending more goods to other countries.
The world's overall race is going a bit slower, with many other countries growing at a much slower pace, around 2.5% to 2.6%.
The US is running steadily, helped by people spending money and new technology.
Europe is also picking up a little speed.
China is growing but expected to slow down a bit later.
So, while the whole world's race might not be as fast, India is shining as the fastest runner.
Moody's Ratings forecasts India's economy to grow at a steady 6.5% through 2027, maintaining its position as the fastest-growing major economy.
India's export sector has demonstrated resilience by diversifying markets to overcome significant US tariffs, with overall exports increasing by 6.75% in September.
Robust internal demand, sustained infrastructure investment, and resilient household consumption are key drivers of India's economic growth.
Global GDP growth is projected to be around 2.5%-2.6% in 2026-2027, with emerging markets outpacing advanced economies.
India benefits from a neutral-to-easy monetary policy and low inflation, contributing to supportive domestic conditions for growth.
- Who
- Moody's Ratings
- What
- Projecting India to remain the fastest-growing major economy with a 6.5% growth rate through 2027, while also outlining global growth forecasts.
- When
- Through 2027, with specific projections for 2025, 2026, and 2027, and data points for September.
- Where
- India, G-20 nations, United States, Europe, and China.
- Why
- To provide an outlook on global and key economies' economic performance, highlighting India's robust growth drivers and resilience amidst trade shifts and geopolitical realignments.
India's Economic Outlook
Global Economic Outlook
Growth Projections
India's Economic Outlook
India is projected to maintain a 6.5% growth rate through 2027, with 6.4% expected in 2026 and 6.5% in 2027. This solidifies its position as the fastest-growing G-20 economy.
Global Economic Outlook
Global GDP growth is anticipated to hover around 2.5-2.6% in 2026 and 2027, a slowdown from 2024's projected 2.9%. Advanced economies are expected to grow modestly around 1.5%, while emerging markets, led by India, will expand closer to 4%.
Growth Drivers and Support
India's Economic Outlook
India's growth is supported by robust internal demand, sustained infrastructure investment, resilient household consumption, and export diversification, which has helped overcome US tariffs. A neutral-to-easy monetary policy stance and low inflation also contribute to supportive domestic conditions.
Global Economic Outlook
Global growth is influenced by policy divergence and trade shifts. The US shows stable momentum driven by consumer spending and AI investment, with benign financial conditions. Europe sees modest improvement from employment gains and monetary easing. China's growth is supported by government stimulus and exports, though domestic fundamentals are soft.
- Moody's India GDP Growth Projection (2026)
- 6.4%
- Moody's India GDP Growth Projection (2027)
- 6.5%
- India's Export Growth (September)
- 6.75%
- Indian Shipments to US (September)
- Dropped 11.9%
- Global GDP Growth Projection (2026-2027)
- Around 2.5% - 2.6%
- Emerging Markets GDP Growth Projection (2026-2027)
- Close to 4%
- China GDP Growth Projection (2025)
- 5%
Sources
Strong demand keeps India’s Q2 GDP growth at 7.2%
Moody's expects India's economy to grow at 6.5% through 2027
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