New Delhi: India’s GDP grew by an impressive 8.2 per cent during the financial year 2023-24 and continued to be the fastest-growing major economy. The economy grew by 7.2 per cent in 2022-23 and 8.7 p
New Delhi: India’s GDP grew by an impressive 8.2 per cent during the financial year 2023-24 and continued to be the fastest-growing major economy. The economy grew by 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. In 2025-26, the Indian economy is projected to grow between 6.3 per cent and 6.8 per cent, as noted in the Economic Survey presented on January 31.
India’s economy is projected to expand at a robust 6.5% growth rate in the financial year 2025-26, maintaining its position as the fastest-growing economy among G-20 nations, both developed and emerging. This forecast comes from Moody’s Ratings, which attributes the strong growth outlook to strategic tax measures and continued monetary easing.
Despite global economic uncertainties, India remains well-positioned to attract investments and withstand potential capital outflows. Moody’s latest report highlights that emerging markets are facing challenges due to shifts in U.S. policies, affecting global capital flows, trade, and supply chains. However, major emerging economies like India and Brazil possess the necessary resources to navigate these uncertainties effectively.
Moody’s recent report on emerging markets emphasizes that these economies are struggling with challenges stemming from shifting U.S. policies, which are disrupting global capital flows, trade, and supply chains. However, major emerging markets like India and Brazil are well-equipped with the resources to navigate these uncertainties.
As per a report by Navbharat Times Hindi, Moody’s has highlighted that changes in U.S. policies are posing challenges for many emerging economies. These shifts are affecting financial transactions, trade, and supply chains. However, major economies like India and Brazil have ample resources to effectively manage these challenges.
Furthermore, the report mentions that economic activity in emerging markets could experience a slight slowdown. In China, growth is primarily fueled by exports and infrastructure investments, but domestic consumption remains subdued.
In addition, Moody’s has forecasted that India’s growth rate will be 6.7% in the current financial year (2024-25), with a slight decline to 6.5% in the following financial year (2025-26). Inflation is expected to average 4.5% this year, compared to 4.9% last year.
The Indian government’s Budget for 2025-26 raised the income tax rebate threshold from Rs 7 lakh to Rs 12 lakh, providing a tax relief of Rs 1 lakh crore to the middle class. In addition, the Reserve Bank of India (RBI) reduced interest rates by 25 basis points in February, bringing them down to 6.25%. The central bank is widely anticipated to announce further rate cuts during its next monetary policy review on April 9, 2025.
The report highlighted that India has a low external vulnerability indicator of 61%, indicating reduced susceptibility to external financial shocks. Additionally, the country benefits from a higher proportion of external debt denominated in domestic currency, which helps mitigate exposure to exchange rate fluctuations.
Although global growth in emerging markets is expected to slow in 2025-26, India is well-equipped to sustain its growth momentum. Moody’s highlighted that large, domestically driven economies like India and Brazil are better able to withstand financial pressures compared to smaller, export-reliant economies, which are more vulnerable to shifts in investor sentiment and currency fluctuations.
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