India’s real Gross Domestic Product (GDP) growth is projected to exceed 6.5% in the fiscal year ending March 2026, said Moody’s Ratings in its latest Banking System Outlook – India report, released recently.

• The agency attributed this growth to increased government capital expenditure, tax cuts, and interest rate reductions.
• Moody’s report highlighted that India’s economy is set to recover from a cyclical slowdown.
• The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, introduced significant tax relief under the new tax regime, exempting income up to Rs 12 lakh from taxation.
• The measures are expected to boost consumption and contribute to overall economic expansion.