Moody's Projects India's GDP Growth to Exceed 6.5% in FY 2025-26
| Aspect | Details |
|---|---|
| Global Agency | Moody's Ratings |
| GDP Growth (FY 2025-26) | Exceeds 6.5% (up from 6.3% in FY 2024-25) |
| Key Growth Drivers | Higher government capital expenditure, tax cuts, and interest rate cuts |
| Inflation (FY 2025-26) | 4.5% (down from 4.8% in FY 2024-25) |
| RBI Interest Rates | Raised by 250 bps (May 2022-Feb 2023); cut by 25 bps to 6.25% in Feb 2025 |
| Banking Sector Issues | Moderate deterioration in asset quality; slight decline in Net Interest Margins (NIMs) |
| Loan Growth (FY 2025-26) | 11-13% (down from 17% average in March 2022-2024) |
| Economic Survey Estimate | GDP growth projected at 6.3% to 6.8% for FY 2025-26 |
| Current Fiscal Growth (FY 2024-25) | 6.5% (official estimates) |