India's Economic Growth Projected at 6.5% in 2025-26: Moody's Report
| Category | Details |
|---|---|
| GDP Growth | India projected to achieve 6.5% GDP growth in 2025-26, fastest in G20. |
| Previous Growth | Slight slowdown from 6.7% in the previous year. |
| Key Drivers | Tax reforms, monetary easing, and capital attraction. |
| Income Tax Reforms | Union Budget 2025-26: I-T exemption limit increased to Rs 12 lakh, Rs 1 lakh crore tax relief. |
| Monetary Policy | RBI cut interest rates by 25 basis points to 6.25% in February, another cut expected in April. |
| Inflation | Projected at 4.5% in 2025-26, down from 4.9% last year. |
| Capital Markets | India and Brazil better positioned to attract global capital due to deep capital markets and strong policy credibility. |
| External Vulnerability | India's low external vulnerability indicator (61%) signals financial resilience. |
| Global Economic Trends | Emerging markets to see slower growth; Asia-Pacific remains the fastest-growing region. |
| US Policies' Impact | US policies on capital flows, trade, and tariffs could affect emerging markets, including India. |
| China's Economy | Export-driven growth, weak domestic consumption; supported by infrastructure and high-tech investments. |
| Vulnerable Economies | Smaller emerging economies like Argentina and Colombia face risks from investor sentiment shifts and currency fluctuations. |