International rating agency Moody’s has increased India’s growth rate estimate from 6.1 percent to 6.8 percent. This estimate has been kept for 2024. The Indian economy grew at the rate of 7.7 percent in 2023.
Global rating agency Moody’s has increased India’s growth rate forecast for the calendar year 2024 to 6.8 percent. Earlier, the rating agency had estimated the Indian economy to grow at the rate of 6.1 percent in 2024. India’s economic data in the year 2023 has been better than expected, due to which Moody’s has increased its growth rate forecast. India’s real gross domestic product (GDP) growth rate in the fourth quarter of calendar year 2023 has been 8.4 percent on an annual basis. In such a situation, the Indian economy has grown at the rate of 7.7 percent in the entire year of 2023.
Moody’s Investors Service said on Monday that government capital expenditure and strong manufacturing activities have delivered meaningful results on the growth front in 2023. The rating agency believes that adverse conditions at the global level have now reduced, due to which India can easily register a growth of six to seven percent.
GDP forecast in 2025
Rating agency Moody’s said that India’s GDP growth rate in 2025 is estimated to be 6.4 percent. Moody’s said high-frequency indicators suggest the economy’s strong momentum from the September and December quarters continues into the March quarter of 2024.
capex spending
In this year’s interim budget, the allocation for Capex (capital expenditure) has been kept at Rs 11.1 lakh crore or equal to 3.4 percent of the GDP for 2024-25. This is 16.9 percent more than the estimate for 2023-24. Moody’s said, “We are expecting continuity on the policy front after the general elections. Apart from this, we believe that the work of taking the infrastructure sector forward will continue.”
The year 2024 is an election year for many G20 countries like India, Indonesia, Mexico, South Africa, Britain and America. Moody’s said that the impact of the elections is visible beyond the borders. Moody’s said that the leaders who will be elected in these elections, their influence on domestic and foreign policies will be seen during the next four to five years.
