Moody's Ups India's Growth Forecast Amid Strong Economic Momentum

Moody's Ratings has raised India's GDP growth forecast to 7.2% for 2024 and 6.6% for 2025, citing strong broad-based growth. The economy showed solid performance despite tight monetary policies, with rural demand revival and healthier corporate balance sheets. Digitalization and infrastructure spending continue to support growth.

Moody's Ratings revised its GDP growth forecast for India to 7.2% in 2024 and 6.6% in 2025, driven by strong broad-based growth. The agency noted that growth could rise further with increased private consumption momentum.

From a macroeconomic standpoint, India's economy benefits from solid growth and moderating inflation. The updated projections place India's GDP growth at 7.2% in 2024 and 6.6% in 2025, up from previous estimates of 6.8% and 6.4%, respectively.

Early signs of rural demand recovery and improved corporate balance sheets contribute to this positive outlook, with firms accessing equity and bond markets more freely. Rising capacity utilization and government focus on infrastructure further bolster growth prospects. Digital public infrastructure and strong external positions also contribute to the favorable economic environment.

(With inputs from agencies.)