Infra spending, consumption to drive India’s 6.5% GDP growth till 2027: Moody’s

India’s economy will remain one of the fastest-growing globally, with robust infrastructure spending and resilient household consumption helping sustain average annual economic growth of 6.5 percent through 2027, Moody’s Ratings said in its latest Global Macro Outlook.

The agency kept India’s 2025 GDP growth projection unchanged at 7 percent, followed by 6.4 percent in 2026 and 6.5 percent in 2027, citing stable domestic demand and ongoing export diversification. “We expect Brazil and India — the fastest-growing G20 economies — will grow at 2% and 6.5%, respectively, through 2027, supported by domestic and export diversification,” Moody’s noted.

While infrastructure investments and steady consumption remain the key drivers, Moody’s highlighted that private sector capital spending continues to lag, with corporates cautious about large expansions despite strong macro indicators. “India’s economic growth is supported by robust infrastructure spending and solid consumption, although the private sector remains cautious about business capital spending,” the report said.

The report also pointed to India’s success in redirecting exports amid heightened trade frictions. Facing 50 percent US tariffs on some goods, Indian exporters managed to grow overall shipments by 6.75 percent in September, even as exports to the US fell by nearly 12 percent, it said.