S&P Global Market Intelligence revises India's FY25 growth forecast to 6.8%

livemint.com:

2024’s growth forecast for India due to stronger than expected momentum at the start of the year. An improving global economic environment and an expected gradual easing of domestic financial conditions will support economic activity," the news platform Economic Times quoted S&P Global Market Intelligence economist as saying. The revised forecast comes days after Moody raised India's growth forecast to 8% from 6.6% in FY24 on the backs of strong domestic consumption and high expenditure from the government.

"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.

India's Gross Domestic Product (GDP) growth surprised in the October-December quarter as the nation registered an 8.4% jump with sectors like manufacturing, electricity, and construction putting up a robust show. S&P Global Market Intelligence raised its global growth forecast from 2.3% to 2.6% on the basis of better growth in countries like the US, the UK, and India. “Annual real GDP growth is now projected at 2.6%, up from 2.3% at the start of the year.