In its latest report, Moody’s Investors Service projected that the economic growth in India will rebound strongly. It has pegged GDP growth for the nation expanding to 9.3 percent in the current fiscal ending March 2022, followed by 7.9 percent in fiscal 2023.
India’s rising vaccination rate, stabilizing consumer confidence, low interest rates and higher public spending underpin positive credit fundamentals for non-financial companies, the agency said. Growing government spending on infrastructure will support demand for steel and cement, while India’s push for domestic manufacturing and benign funding conditions will support new investments, it added.
India’s central bank, the Reserve Bank of India, has ensured that interest rates in India have remained at record lows, and has also maintained a supportive stance to encourage growth. Higher inflation remains a threat as it might lead to a faster-than-expected increase in interest rates, which would weigh on business investment, Moody’s cautioned.
Moody’s analyst Sweta Patodia said, “Consumer demand, spending and manufacturing activity are recovering following the easing of pandemic restrictions. These trends, including high commodity prices, will propel significant growth in rated companies’ EBITDA over the next 12-18 months.”
Last updated: December 26th, 2025
