The company stated excessive-frequency indicators present that the economic system’s robust September and December quarter momentum carried into the March quarter of 2024. (Representative picture)
India’s actual GDP expanded 8.4 per cent yr-over-yr within the fourth quarter of calendar yr 2023, leading to a 7.7 per cent progress for full-yr 2023.
Global ranking company Moody’s on Monday raised India’s progress forecast for 2024 calendar yr to six.8 per cent, from 6.1 per cent estimated earlier, on the again of ’stronger-than-anticipated’ financial knowledge of 2023 and fading international financial headwinds.
India’s actual GDP expanded 8.4 per cent yr-over-yr within the fourth quarter of calendar yr 2023, leading to a 7.7 per cent progress for full-yr 2023.
Capital spending by the federal government and powerful manufacturing exercise have meaningfully contributed to the strong progress outcomes in 2023, Moody’s Investors Service stated.
With international headwinds fading, the Indian economic system ought to be capable of comfortably register 6-7 per cent actual GDP progress, it added.
“India’s economy has performed well and stronger-than-expected data in 2023 has caused us to raise our 2024 growth estimate to 6.8 per cent from 6.1 per cent. India is likely to remain the fastest growing among G-20 economies over our forecast horizon,” Moody’s stated in its Global Macroeconomic Outlook for 2024.
For 2025, the GDP progress is estimated at 6.4 per cent.
The company stated excessive-frequency indicators present that the economic system’s robust September and December quarter momentum carried into the March quarter of 2024.
“Robust goods and services tax collections, rising auto sales, consumer optimism and double-digit credit growth suggest urban consumption demand remains resilient. On the supply side, expanding manufacturing and services PMIs add to evidence of solid economic momentum,” Moody’s stated.
This yr’s interim finances targets capital expenditure allocation of Rs 11.1 lakh crore or 3.4 per cent of GDP in 2024-25 (fiscal yr 2025), 16.9 per cent above the 2023-24 estimates.
“We expect policy continuity after the general election and continued focus on infrastructure development,” Moody’s stated.
The company stated whereas non-public industrial capital spending has been gradual to choose up, it’s anticipated to choose up with ongoing provide chain diversification advantages and traders’ response to the federal government’s Production Linked Incentive scheme to spice up key focused manufacturing industries.
The yr 2024 is an election yr for a number of G-20 nations together with India, Indonesia, Mexico, South Africa (Ba2 secure), the UK and the US.
Implications of elections can transcend borders and financial and public coverage in at the moment’s more and more fractious world, it stated.
“Leaders elected this year will influence domestic and foreign policies for the next four to five years. Businesses are accordingly responding to evolving geopolitical dynamics by reorganizing supply chains and capital sources,” Moody’s stated.
It stated geopolitical realities shall be influencing worldwide commerce flows, capital flows, worldwide migration developments and worldwide organizations within the years to return. Domestically, industrial and commerce insurance policies of a number of nations are intertwined with international coverage.
(This story has not been edited by News18 workers and is printed from a syndicated information company feed – PTI)
