Global rating agency Moody’s upgraded India’s growth forecast for the calendar year 2024 to 6.8%, up from the earlier estimate of 6.1%. This upward revision is attributed to the ‘stronger-than-expected’ economic performance in 2023 and diminishing global economic challenges.
India’s real GDP surged by 8.4% year-over-year in the fourth quarter of 2023, leading to a full-year growth of 7.7% for the same year. Moody’s pointed out that the government’s capital spending and robust manufacturing activity significantly contributed to the impressive growth figures in 2023.
With the waning of global economic headwinds, Moody’s expects the Indian economy to comfortably sustain a real GDP growth rate of 6-7%. The agency emphasized that India is likely to maintain its position as the fastest-growing economy among G20 nations over the forecast period.
Moody’s Global Macroeconomic Outlook for 2024 also forecasts a GDP growth rate of 6.4% for India in 2025. This positive outlook reflects confidence in India’s economic resilience and potential for continued growth trajectory amidst improving global conditions.
Overall, Moody’s upgrade underscores the positive momentum in India’s economic recovery and reinforces its position as a key player in the global economy.
