New Delhi, Feb 9 || India’s real gross domestic product (GDP) is likely to expand 6.4 per cent in fiscal 2026‑27 -- the fastest among G20 economies -- driven by strong domestic consumption and policy measures, a new report has said.
The report from Moody’s Ratings said the country’s banking system outlook remains broadly favourable amid sufficient reserves to absorb loan losses.
The operating environment for banks will remain strong in 2026, supported by robust macroeconomic conditions and structural reforms, it said.
"The rationalisation of the goods and services tax (GST) in September 2025 and an earlier increase in personal income tax thresholds will help improve affordability for consumers and support consumption-led growth," the global brokerage mentioned.
It expects the Reserve Bank of India (RBI) to ease policy further in 2026‑27 only if there are clear signs of a slowdown in activity, adding that inflation remaining under control would allow the central bank flexibility.