India's growth to be highest among advanced, emerging G20 nations: Moody's

Moody's Ratings on Tuesday said India's growth at 6.5 per cent this fiscal will remain the highest amongst the advanced and emerging G-20 countries, supported by tax measures and continued monetary easing, and the country will continue to attract capital and withstand any cross-border outflow.

In its report on emerging markets, Moody's said such economies are "exposed to choppy waters" from the churn of US policies and its potential to reshape global capital flows, supply chains, trade and geopolitics. Large EMs (emerging markets) have resources to navigate the turbulence. 

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It said economic activity in the fastest-growing economies will slow slightly from high levels but remain strong this year and next. In China, exports and investment in infrastructure and priority high-tech sectors remain the main growth drivers, while domestic consumption remains weak.

 

"India's growth will remain the highest of the advanced and emerging G-20 countries, supported by tax measures and continued (monetary) easing," Moody's said, while projecting at a 6.5 per cent growth for 2025-26 fiscal, down from 6.7 per cent in 2024-25.

It projected inflation to average 4.5 per cent in the current fiscal (April-March), from 4.9 per cent in the last fiscal.