India’s economic expansion is expected to remain among the strongest globally, with Moody’s projecting real GDP growth of 6.4% in FY2026–27, the fastest pace among G-20 economies. The agency said sustained output growth would provide a strong macroeconomic foundation, supporting financial stability and credit demand across sectors. Structural reforms, including the rationalisation of the goods and services tax and income tax reductions, are expected to boost domestic consumption, while a stable monetary policy stance should keep financial conditions supportive.