India’s GDP is expected to exceed 6.5% in FY26, up from 6.3% in FY25, driven by higher government spending, tax cuts, and monetary easing, says Moody’s. Inflation may decline to 4.5%, while banking sector stability will continue despite slight asset quality concerns. Loan growth is expected to slow to 11-13% from 17% (2022-24) as banks align lending with deposits.
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