India’s economy is set to grow at an average pace of around 6.5 percent through 2027, according to Moody’s Ratings. The agency maintained its GDP growth projections at 6.4 percent for 2026 and 6.5 percent for 2027, citing sustained momentum driven by infrastructure spending, strong consumer demand, and diversified exports.
In its latest report, ‘Global Macro 2026: Growth will be steady but subdued in 2026’, Moody’s said India continues to outperform major economies despite global headwinds and the impact of steep US tariffs on certain Indian goods. “India’s growth will remain robust even as private sector investment stays cautious,” it said.
The report noted that while the United States imposed tariffs of up to 50 percent on Indian imports — including a 25 percent penalty linked to Russian crude purchases — both countries are in talks to resolve trade issues, with US President Donald Trump suggesting a deal may be on the horizon.
Highlighting global risks, Moody’s warned that geopolitical tensions, trade disruptions, and financial market instability could weigh on growth. “Global expansion will likely stay steady but subdued, with advanced economies seeing modest gains and emerging markets maintaining stronger momentum,” it added.
On China, Moody’s projected GDP growth of around 5 percent in 2025 supported by stimulus measures and exports, but said it could ease to 4.2 percent by 2027 amid weak consumer spending and shrinking infrastructure investment.
The agency also said the US economy, though still resilient, is showing signs of a slowdown. “Hiring and income growth are weakening, indicating a late-cycle economy. However, consumer spending and AI-driven investments continue to support growth,” Moody’s noted.