Moody’s raises 2023 GDP forecast to 6.7%
Earlier, global rating agency made 5.5% growth prediction for Indian economy
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New Delhi Moody’s Investors Service on Friday raised India’s growth projection for 2023 calendar year to 6.7 per cent on account of robust economic momentum.
“Strong services expansion and capital expenditures propelled India’s 7.8 per cent real GDP growth in the second (April-June) quarter from a year ago. We have accordingly raised our 2023 calendar year growth forecast for India from 5.5 per cent to 6.7 per cent,” Moody’s said in its Global Macro Outlook.
“Given the robust underlying economic momentum, we also recognise further upside risk to India’s economic growth performance,” it added Moody’s said since the second quarter outperformance creates a high base in 2023, “we have lowered our 2024 growth forecast from 6.5 per cent to 6.1 per cent.” India’s monsoon season which runs from June to October could also see below average rainfall, resulting in higher food prices. So far, as of August 29, the India Meteorological Department has estimated a nine per cent rain deficiency across the country.
