Moody’s Predicts India’s Growth at 7% in 2025
Moody’s Ratings has projected that India’s economy will grow 7 percent in 2025, supported by steady domestic demand and ongoing capital expenditure. The agency expects growth to ease slightly to 6.4 percent in 2026, noting that India will remain one of the fastest-growing major economies in the world.
Key Drivers Behind The Forecast
Moody’s said India’s large consumer base, rising infrastructure spending and improving business activity continue to strengthen the country’s economic outlook. The agency also highlighted that inflation remains comparatively stable, helping maintain purchasing power and investment sentiment. However, it cautioned that global uncertainty, weaker external demand and execution risks in domestic reforms could slow momentum if not addressed.
India’s Position In Asia-Pacific
The ratings agency stated that India is likely to outperform most major Asia-Pacific economies besides China over the next two years. With sustained investment and rising consumption, India is expected to maintain its position as a key driver of regional and global growth.
Policy Considerations And Risks
Moody’s added that policy continuity, efficient implementation of public-sector projects and deeper private investment will be critical for maintaining the forecasted pace. It also suggested close monitoring of external vulnerabilities and global economic shifts, which could influence India’s medium-term trajectory.
