Moody's upgrades India's FY24 GDP growth forecast to 8%
NEW DELHI : Rating agency Moody's on Thursday raised its forecast for India's GDP growth in FY24 to 8% from 6.6% on the back of strong government expenditure and domestic consumption. The upgrade comes a week after the rating agency raised its forecast for India's GDP growth in calendar 2024 to 6.8% from 6.1%.
"We expect India to be the fastest-growing economy among major G20 countries, with its real GDP growth to accelerate to around 8% in the fiscal year ending March 2024 (fiscal 2023-24) from 7.0% in fiscal 2022-23," Moody's said in its Banking System Outlook report. "Government capital expenditure and strong domestic consumption will underpin India's economic growth.
Moreover, India is poised to benefit from increased global trade and investment opportunities arising from companies' strategies to diversify away from China," the rating agency said. The Indian economy soared ahead in the December quarter with a surprise growth of 8.4%, belying fears of tempering as manufacturing, electricity and construction put up a robust show.
The growth in the third quarter reported by the statistics ministry was also higher than the 7.6% reported for the preceding second quarter, which was revised to 8.1%, while the Q1 GDP growth figures were updated to 8.2%. The high growth number has also meant a revision in the estimate for GDP growth in FY24 by the National Statistical Office, from 7.3% in its first advance forecast to 7.6% in its recent second revised estimate.
Reserve Bank of India’s economic growth estimate for FY24 is 7%, while the International Monetary Fund's forecast is 6.7%. The Indian economy, which expanded at a four-month high in January, continued to strengthen in February, seeing accelerations in both
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