Published: 8 February 2026Business StandardEconomy
Moody's Projects India GDP Growth at 6.4% for FY27, Fastest Among G20 Nations
AQuick answer
Moody's projects India GDP at 6.4% for FY27, fastest among G20; growth driven by consumption and policy reforms.
Key facts
Moody's Ratings projected India's real GDP to grow at 6.4% in FY27, making it the fastest-growing G20 economy (released February 9, 2026)
Growth driven by strong domestic consumption, policy measures, and a stable banking system
GST rationalisation in September 2025 and increased personal income tax thresholds expected to improve consumer affordability
Moody's expects growth of 6.5% in 2027; projection slightly below Finance Ministry's Economic Survey estimate of 6.8-7.2%
Inflation remains under control with strong growth momentum
Moody's Ratings projected India's real GDP to grow at 6.4% in FY27, making it the fastest-growing G20 economy. The projection was released on February 9, 2026. Growth is driven by strong domestic consumption, policy measures, and a stable banking system.
The GST rationalisation in September 2025 and increased personal income tax thresholds are expected to improve consumer affordability. Moody's expects growth of 6.5% in 2027. The projection is slightly below the Finance Ministry's Economic Survey estimate of 6.8-7.2%, but Moody's noted inflation remains under control with strong growth momentum.
0
Mains angle
Q: Assess the factors driving Moody's GDP growth projection of 6.4% for India in FY27 and its comparative standing in the G20. Answer (50 words): Released on February 9, 2026, Moody's projected India's real GDP to grow 6.4% in FY27, the fastest among G20 economies, driven by strong domestic consumption, a stable banking system and policy reforms. GST rationalisation and raised personal income tax thresholds boost affordability. Growth of 6.5% is expected in 2027.
Tap an option below. Correct or incorrect feedback appears instantly.
Linked questionEasy
According to Moody's Ratings (February 2026), what is India's projected real GDP growth rate for FY27?
Explanation · Correct answer B
Moody's Ratings projected India's real GDP to grow at 6.4% in FY27, making it the fastest-growing G20 economy. This is slightly below the Finance Ministry's Economic Survey estimate of 6.8-7.2%.
What GDP growth did Moody's project for India for FY27?
**Moody's Ratings** projected India's real GDP to grow at **6.4% in FY27**, making it the **fastest-growing G20 economy**. The projection was released on **February 9, 2026**.
What factors does Moody's cite for India's 6.4% FY27 growth?
Moody's cites: **strong domestic consumption**, **policy measures** (Union Budget 2026-27 reforms), **stable banking system**, **GST rationalisation** (September 2025), and **increased personal income tax thresholds** improving consumer affordability as key drivers.
How does India's Moody's-projected FY27 growth compare to other G20 nations?
India's **6.4% FY27 growth** is the **fastest among G20 economies**. For comparison, China is projected at ~4.5%, USA at ~2.2%, UK at ~1.5%, and Japan at ~1.0%. This cements India's position as the world's growth engine.
What is the impact of GST rationalisation on India's economic growth in 2026?
The **GST rationalisation in September 2025** (reducing rates on several consumer goods) improved **consumer affordability** and stimulated domestic consumption. Combined with higher income tax thresholds (Budget 2026-27), it boosted consumer spending — a key contributor to India's 6.4% FY27 growth projection.
Which credit rating agency projected India as the fastest-growing G20 economy in 2026?
**Moody's Ratings** (one of the three major global credit rating agencies, alongside S&P and Fitch) projected India as the **fastest-growing G20 economy at 6.4% in FY27**, released in February 2026.
Was this useful?
Share corrections or missing exam angles with the editorial team.
