<div id="readability-page-1"><div id="parent_top_div"><p>Global credit rating agency Moody’s on Tuesday said that India’s growth, despite slowing to 6.5 per cent in FY26 from 6.7 per cent in FY25, will remain the highest among the advanced and emerging G20 countries due to support from tax measures and continued monetary easing.</p> <p>  “India's growth will remain the highest of the advanced and emerging G20 countries, supported by tax measures and continued easing,” the global credit rating agency noted in its latest report on emerging markets.</p> <p>  In February, the government in the Union Budget hiked the income tax rebate to Rs 12 lakh from Rs 7 lakh. Also, the central bank’s rate-setting panel slashed the policy repo rate by 25 basis points to 6.25 per cent, marking the first reduction in almost five years.</p> <p>  Besides, the report also noted that large emerging markets such as India and Brazil are better positioned to attract and retain global capital in risk-averse conditions because of their large and domestically oriented economies, deep domestic capital markets, moderate policy credibility and substantial foreign exchange reserves.</p> <p>  “By contrast, smaller and more open economies are more exposed to fluctuations in investor sentiment and currency volatility, as are economies with a large share of debt denominated in foreign currency, such as Argentina and Colombia,” the report noted.</p> <p>  On the inflation front, the report projected India’s inflation to average 4.5 per cent in the current financial year, down from 4.9 per cent in FY25.</p> <p>  The report also noted that emerging markets are &#34;exposed to choppy waters&#34; from the churn of United States policies and their potential to reshape global capital flows, supply chains, trade and geopolitics.</p> <p>“Large emerging markets have resources to navigate the turbulence. But smaller, open emerging markets are more vulnerable because they rely more on cross-border trade and investment for growth. Differentiation among emerging markets in terms of economic growth, financing conditions and currency volatility will become more pronounced as United States policies continue to shift, with potentially far-reaching credit implications,” the report noted.</p> </div></div>

<p>Moody's has projected that India's growth will remain the highest among advanced and emerging G20 nations, despite a slight decline to 6.5% in FY26 from 6.7% in FY25. This growth is supported by tax measures and monetary easing, including an increase in the income tax rebate and a reduction in the policy repo rate. The report highlights India's strong position to attract global capital due to its large, domestically oriented economy and substantial foreign exchange reserves, while also noting the challenges faced by smaller, more open economies.</p>

India's growth to be highest among advanced, emerging G20 nations: Moody's