We expect India ' the fastest-growing G-20 economy ' will grow at 2.0% and 6.5%, respectively, through 2027, supported by domestic and export diversification, Moody's in its Global Macro Outlook on Thursday stated. India's economic growth is supported by robust infrastructure spending and solid consumption, although the private sector remains cautious about business capital spending. Indian exporters, facing 50% US tariffs on some products, have succeeded in redirecting exports ' its overall exports climbed 6.75% in September even as shipments to the US dropped 11.9%. We expect its economy to continue to grow around 6.5% in 2026 and 2027, supported by a neutral-to-easy monetary policy stance amid low inflation. International capital flows because of positive international investor sentiment have buffered external shocks. India's economy is projected to grow at 7 per cent in 2025, Moody's Ratings noted.

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