The Indian economy is in a 'golden phase'. (Source: Elitebusiness Magazine)

In its latest global economic outlook report, Moody's said that the Indian economy is in a "golden phase".

The agency also forecasts the South Asian country's growth to remain steady at 6.6% in 2025 and 6.5% in 2026.

Household consumption is expected to pick up on strong demand during the festive season and rural spending boosted by a favourable monsoon, according to Moody's.

Although pressure from food prices remains, inflation is expected to cool gradually towards the Reserve Bank of India's (RBI, central bank) target.

"The RBI is likely to maintain relatively tight monetary policy next year, while geopolitical tensions and extreme weather are potential inflation risks," Moody's Ratings said in a report.

The Group of 20 (G20) major developed and emerging economies is forecast to grow 2.8% in 2024, down from 3% last year, and to slow slightly in 2026.