Moody’s Raises India’s GDP Growth Forecast for 2024
Moody’s Investors Service recently raised India’s GDP growth forecast for the year 2024 to 6.8% from an earlier estimate of 6.1%. This revision is attributed to stronger-than-expected economic performance in 2023, including significant growth in manufacturing and construction activities. India’s economy had shown an impressive growth rate of 8.4% year-over-year in the fourth quarter of 2023, leading to a full-year growth of 7.7%. Factors such as robust Goods and Services Tax collections, rising automobile sales, consumer optimism, and double-digit credit growth have contributed to this positive outlook. Despite the strong growth dynamics, Moody’s highlighted concerns over inflation, which remains above the Reserve Bank of India’s 4% target, suggesting that policy easing may not occur in the near future. Additionally, Moody’s projects that G20 economies will collectively grow by 2.4% in 2024, indicating that India’s growth rate is significantly higher than the average for G20 nations.
If you like this post, please share your feedback in the comments section below so that we will upload more posts like this.
