NEW DELHI: Global rankings company Moody’s Investors has raised India’s GDP development forecast for 2024, citing robust demand momentum and fading world headwinds.
“India’s economy has performed well and stronger-than-expected data in 2023 has caused us to raise our 2024 growth estimate to 6.8% from 6.1%. India is likely to remain the fastest growing among G20 economies over our forecast horizon,” Moody’s mentioned in a report. The company mentioned India’s actual GDP expanded 8.4% year-over-year within the fourth quarter of 2023, leading to 7.7% development for full-year 2023.
“We believe that with global headwinds fading, the Indian economy should be able to comfortably register 6%-7% real GDP growth and we therefore forecast around 6.8% growth in 2024, followed by 6.4% in 2025,” mentioned Moody’s. It mentioned capital spending by govt and powerful manufacturing exercise have meaningfully contributed to the sturdy development outcomes in 2023, including that it expects coverage continuity after the overall election and continued give attention to infrastructure growth.
Moody’s mentioned high-frequency indicators confirmed that the economic system’s robust third and fourth quarter momentum carried into the primary quarter of this 12 months. Robust GST collections and credit score development recommend city consumption demand stays resilient.
