Moody’s raises 2024 GDP growth forecast to 7.2%

New Delhi: Moody’s Ratings on Thursday raised India’s GDP growth forecast for 2024 and 2025 calendar year to 7.2 per cent and 6.6 per cent, respectively, on strong broad-based growth.

The ratings agency said that the growth could be higher if the cyclical momentum, especially for private consumption, gains more traction.

“From a macroeconomic perspective, the Indian economy is in a sweet spot, with the mix of solid growth and moderating inflation,” Moody’s Ratings said in its August update of Global Macro Outlook 2024-25.

As per the projections, India’s GDP growth would be 7.2 per cent in 2024, up from 6.8 per cent previously. In 2025, the growth is estimated at 6.6 per cent versus our earlier estimate of 6.4 per cent.

“We have raised our real GDP growth projections for the Indian economy for 2024 and 2025...These forecast changes assume strong broad-based growth,” Moody’s said. The economy expanded 7.8 per cent year-over-year in the first quarter of 2024 despite the persistence of tight monetary policy and demonstrated progress on fiscal consolidation.