India to Lead as Asia-Pacific's Fastest-Growing Economy in 2024

According to Moody's Ratings, India is set to remain the Asia-Pacific region's fastest-growing economy in 2024, driven by robust local demand, government infrastructure spending, and rising exports. This continuity is anticipated even post-general election, with stronger portfolio inflows and corporate credit metrics expected to contribute significantly.

Moody's Ratings on Thursday affirmed that India will continue to be the Asia-Pacific region's fastest-growing economy in 2024, sustaining the momentum set last year. The nation's growth trajectory is largely domestically driven, bolstered by rising exports and increased government spending on infrastructure projects.

In its comprehensive report titled 'Credit Conditions – Asia-Pacific H2 2024 Credit Outlook,' Moody's highlighted that Indonesia, the Philippines, and India were leading in growth during the first half of 2024. These countries are expected to continue outperforming pre-COVID growth figures through the support of strong local demand and strategic government expenditures.

''India will remain the region's fastest-growing economy, sustaining last year's domestically driven momentum. We anticipate policy continuity after the general election, and a continued focus on infrastructure development and encouragement of private sector investment,'' according to the report.

Moreover, Moody's predicts stronger portfolio inflows in India and ASEAN economies, driven by robust corporate credit metrics and appealing valuations. The rating agency recently projected India to grow by 6.8% this year and 6.5% in 2025, supported by a strong economic expansion and post-election policy continuity.

India's real GDP saw a remarkable increase, growing by 7.7% in 2023, up from 6.5% in 2022, propelled by significant government capital spending and thriving manufacturing activity.

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