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.
