NEW DELHI, March 4 (Xinhua) -- Moody's on Monday raised India's 2024 growth estimate to 6.8 percent from 6.1 percent estimated earlier on the back of strong economic data.
This comes days after India reported its economic growth rate grew to 8.4 percent during the period from October to December, resulting in a 7.6 percent growth rate of GDP in fiscal year 2023-24.
Moody's has cited stronger-than-expected economic data in 2023, upbeat capital spending by the government a robust manufacturing sector as contributing to the strong growth.
The rating agency said with the fading of global headwinds, the Indian economy should comfortably register 6-7 percent real GDP growth.
"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 percent from 6.1 percent. India is likely to remain the fastest growing among G-20 economies over our forecast horizon," Moody's said in its Global Macroeconomic Outlook for 2024.
It predicted a growth rate of 6.4 percent in 2025.
Moody's said it expects policy continuity after the general election (scheduled this year) and continued focus on infrastructure development.
The rating agency said while private industrial capital spending has been slow to pick up, it is expected to pick up with ongoing supply chain diversification benefits and investors' response to the government's Production Linked Incentive scheme to boost key targeted manufacturing industries. ■
