New Delhi, February 9 (IANS). India’s real GDP may grow at the rate of 6.4 percent in the financial year 2026-27. This is due to strong domestic consumption and policy support. This information was given in a report.
The report said that India’s growth rate is expected to be the highest among G20 countries in the next financial year also.
A report by US brokerage firm Moody’s Ratings said the outlook for India’s banking system remains broadly favorable and banks have adequate reserves to absorb bad loans.
The report further said, “The reduction in the Goods and Services Tax (GST) in September 2025 and the earlier income tax cut have increased the spending power of Indians and boosted consumption.”
The report estimates that the Reserve Bank of India (RBI) will further ease policy measures in 2026-27 only when there are clear signs of a slowdown in economic activity. The report also said that keeping inflation under control will provide flexibility to the central bank.
The report estimates credit growth to reach 11.13 per cent in FY2027, up from 10.6 per cent in FY2026 (so far this year). The report also said that the quality of corporate loans will remain good due to the strong balance sheets and better profits of large companies.
“The recovery will be slow as banks resolve distressed loans of large companies,” the report said.
The growth projections made by the rating agency for FY2027 are lower than the range of 6.8-7.2 per cent estimated in the Finance Ministry’s Economic Survey. According to official estimates, growth is expected to reach 7.4 percent in the current financial year.
–IANS
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