Synopsis:
India’s growth narrative gets better: Moody’s raises its GDP estimate for 2024 to 7.2%. With robust, broad-based growth fueled by resilient private consumption and improving business conditions, Moody’s has increased India’s real GDP growth predictions to 7.2% for 2024 (up from 6.8%) and 6.6% for 2025 (up from 6.4%). Despite strict monetary policy and attempts at fiscal austerity, the Indian economy expanded by 7.8% year over year in the first quarter of 2024, with both the industrial and services sectors flourishing.
Moody’s altered its growth predictions for the Indian economy. Moody’s has boosted India’s real GDP growth prediction to 7.2% in 2024 (up from 6.8%) and 6.6% in 2025 (up from 6.4%), noting solid, broad-based growth underpinned by resilient private spending and improving business environment.
The Indian economy expanded 7.8% year on year in the first quarter of 2024, with both the industrial and services sectors thriving despite tight monetary policy and fiscal reduction efforts.
Digitalization, driven by government efforts such as the United Payments Interface (UPI), is also critical to promoting financial inclusion and economic formalization.
Furthermore, India’s external position has improved, with a current account surplus reported for the first time in ten quarters. Fitch affirmed India’s long-term foreign currency
Read More For Answers of Questions Below
1. What factors are driving the strong, broad-based growth in the Indian economy?
2. How is digitalization, particularly the UPI, impacting the Indian economy?
3. What is the current status of India’s external position?
4. What rating has Fitch assigned to India’s long-term foreign currency issuer rating?
