<p>New Delhi: Global ratings agency Moody’s on Monday said India’s Gross Domestic Product (GDP) is projected to grow by 6.4% in 2026-27, the fastest expansion among the G20 member nations, driven by strong domestic consumption and policy reforms.</p>.<p>“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," Moody's said in its latest edition of banking system outlook report.</p>.<p>The rating agency noted that India’s GDP growth in the 2026-27 financial year would be better than all G20 member countries that include the major economies like the United States, China, Germany and Brazil.</p>.<p>Moody’s projection is lower than the government’s estimate, which has been projected in the Economic Survey in the range of 6.8-7.2%.</p>.‘I-T returns in 2026-27 to be governed by old rules’.<p>As per the first advance estimates of GDP released by the National Statistics Office (NSO) last month, India’s economy is projected to grow at 7.4% in the current financial year. India’s GDP growth stood at 6.5% in 2024-25.</p>.<p>On India’s financial sector, Moody’s said asset quality across banks was expected to remain resilient during 2026-27, although some stress is expected among Micro, Small and Medium Enterprises (MSMEs).</p>.<p>The rating agency noted that the banks have adequate buffers to absorb potential loan losses.</p>.<p>Meanwhile, Union Minister of State for Finance Pankaj Chaudhary informed Lok Sabha that gross non-performing asset (NPA) ratio fell to 2.15% as at the end of September, 2025.</p>.<p>The NPAs as a percentage of gross loans and advances of Scheduled Commercial Banks (SCBs), for domestic operations, have been continuously declining during the last eight financial years, the minister said in written reply to a question in Lok Sabha. </p>.<p>Gross NPAs of public sector banks stood at 2.50%, private sector banks at 1.73%, and foreign banks at 0.80%.</p>
<p>New Delhi: Global ratings agency Moody’s on Monday said India’s Gross Domestic Product (GDP) is projected to grow by 6.4% in 2026-27, the fastest expansion among the G20 member nations, driven by strong domestic consumption and policy reforms.</p>.<p>“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," Moody's said in its latest edition of banking system outlook report.</p>.<p>The rating agency noted that India’s GDP growth in the 2026-27 financial year would be better than all G20 member countries that include the major economies like the United States, China, Germany and Brazil.</p>.<p>Moody’s projection is lower than the government’s estimate, which has been projected in the Economic Survey in the range of 6.8-7.2%.</p>.‘I-T returns in 2026-27 to be governed by old rules’.<p>As per the first advance estimates of GDP released by the National Statistics Office (NSO) last month, India’s economy is projected to grow at 7.4% in the current financial year. India’s GDP growth stood at 6.5% in 2024-25.</p>.<p>On India’s financial sector, Moody’s said asset quality across banks was expected to remain resilient during 2026-27, although some stress is expected among Micro, Small and Medium Enterprises (MSMEs).</p>.<p>The rating agency noted that the banks have adequate buffers to absorb potential loan losses.</p>.<p>Meanwhile, Union Minister of State for Finance Pankaj Chaudhary informed Lok Sabha that gross non-performing asset (NPA) ratio fell to 2.15% as at the end of September, 2025.</p>.<p>The NPAs as a percentage of gross loans and advances of Scheduled Commercial Banks (SCBs), for domestic operations, have been continuously declining during the last eight financial years, the minister said in written reply to a question in Lok Sabha. </p>.<p>Gross NPAs of public sector banks stood at 2.50%, private sector banks at 1.73%, and foreign banks at 0.80%.</p>