New Delhi, March 12 -- Higher government capex and a boost in consumption will fuel India's economic growth in FY26, exceeding 6.5 per cent in the next fiscal, Moody's ratings said on Wednesday.

If the trends sustain, the uptick will be significantly higher from 6.3 per cent this fiscal.

The ratings agency commented that India's economic growth is poised to be one of the fastest among large economies, following a temporary slowdown in 2024.

"Government capital expenditure, tax cuts for middle-class income groups to boost consumption and monetary easing will help India's real GDP growth exceed 6.5% for fiscal 2025-26 from 6.3% in fiscal 2024-25," Moody's Ratings said.

Projecting a stable outlook for the banking sector, Moody's said alt...