Moody's maintains 'stable outlook' for India, gives this estimate about growth rate
Moody's: Moody's said India has benefited from infrastructure development, digitalization and financial system strengthening. Following a series of relatively strong GDP data in the first three quarters of the fiscal year 2023-24, Moody's has revised India's real GDP growth forecast for the full year to 8 per cent.
Rating agency Moody's has maintained a stable outlook for the Government of India. The long-term and short-term ratings of the Government of India are pegged at Baa3 and P-3 respectively by the agency. The stable outlook incorporates the possibility that India's fiscal metrics will continue to show strong growth, albeit gradually, compared to close peers.
Maintaining a stable outlook, Moody said India balances its large and diversified economy through high growth potential, relatively strong external position, and high general government debt. Moody's said a stronger and more stable economy has emerged since the pandemic. However, a material reduction in debt is not expected amid gradual fiscal consolidation at the beginning financial year.
Moody's also said that India has benefited from infrastructure development, digitalization and strengthening of the financial system. Following a series of relatively strong GDP data in the first three quarters of the fiscal year 2023-24, Moody's has revised India's real GDP growth forecast for the full year to 8 per cent.
Moody's estimates economic growth to remain above 6 per cent over the next two fiscal years, although there are upside risks to the projections. Meanwhile, Moody's Ratings has completed the periodic review of India's rating and other related ratings. This review was completed through the Rating Committee on April 4, 2024.
In March, Moody's released a report predicting that India will grow more economically in 2024–25 than its G20 peers, or other emerging markets because it has been able to sustain the momentum of domestic demand.
During the October–December quarter of the current fiscal year 2023–24, India's GDP increased by an astounding 8.4%, maintaining its position as the fastest-growing major economy. The Indian economy grew by 7.8 per cent and 7.6 per cent, respectively, in the most recent quarters, April-June and July-September. The economy of India is predicted to expand by 7.7% in 2022–2023 and 8.7% in 2021–2022, respectively.
