By India’s own record, a 6.4% growth would be the weakest in the last four years. It’s also much lower than the near-7.4% growth projected by the country’s Chief Economic Advisor, V Anantha Nageswaran, after the tariff truce between India and the US.
Moody’s cited at least three reasons for its projection: structural reforms,
recent cuts in income tax as well as goods and services tax (GST), and stable monetary policy.
The growth is likely to result in better risk appetite, strong demand for credit, and an improved loan repayments, benefitting banks in particular.
“The government is also expected to maintain a very high level of support for public sector banks,” the report released on February 9 added.
India’s financial stocks have surged in trade today, buoyed by stunning growth at its largest bank, the State Bank of India (SBI), and also by the reduction in deposit insurance premiums effective April 1 this year.
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First Published: Feb 9, 2026 11:35 AM IST
