Indian Economy Likely To Grow At 6.8% In FY24-25: Moody's
India's gross domestic product (GDP) saw 8.2 per cent growth in FY 2023-24, data released by the National Statistical Office
The Indian economy is expected to grow at 6.8 per cent in the current financial year 2024-25, fuelled by increasing domestic and overseas demand that supports GDP growth in emerging markets (EM), Moody's Ratings said on Tuesday.
However, the rating agency's 2024-25 GDP growth estimates are lower than the projections made by the RBI. The RBI, in its latest monetary policy review meeting, projected the Indian economy to grow at 7.2 per cent in FY 24-25.
The global rating agency for the next financial year 2025-26 has pegged India's growth at 6.2 per cent. It also asserted that India benefited from infrastructure development, digitalisation and the rehabilitation of the financial system.
India's GDP grew at a massive 8.4 per cent during the October-December quarter of the financial year 2023-24 and 7.8 per cent for Q4. Estimates released by the National Statistical Office (NSO) placed India's real gross domestic product (GDP) growth at 8.2 per cent in 2023-24. India's economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, respectively.
Firm GDP growth forecasts, inflation at manageable levels, political stability at the central government level, and appreciable central bank monetary policy, have all contributed to painting a bright picture for the Indian economy in recent quarters.
Citing various macroeconomic parameters that are doing pretty well, India's G20 Sherpa and former CEO of Niti Aayog Amitabh Kant had projected that the country is all set to overtake Japan as 4th largest economy in the world by 2025. The size of India's GDP is currently ranked 5th, after the US, China, Germany, and Japan. It overtook the UK in 2022.
