Moody’s Raises India’s FY2024 GDP Growth Estimate To 6.8% From 6.1%

Agency further said, Capital spending by the government and strong manufacturing activity have meaningfully contributed to the robust growth outcomes in 2023.

Global rating agency Moody’s has revised India’s 2024 GDP growth estimate to 6.8 percent from its earlier prediction of 6.1 per cent. It said the Indian economy should be able to comfortably register 6.0%-7.0% real GDP growth and we therefore forecast around 6.8% growth in the calendar year 2024, followed by 6.4% in 2025.

The revised numbers have mainly come up after India’s real GDP expanded by 8.4% year-over-year in the fourth quarter of calendar year 2023. Moody’s Investors Service added, India’s real GDP expanded 8.4% year-over-year in the fourth quarter of calendar year 2023, resulting in 7.7% growth for the full year 2023.

Moody On India’s GDP In FY25

The rating agency has estimated GDP growth for FY2025 at 6.4 percent.

Agency further said, Capital spending by the government and strong manufacturing activity have meaningfully contributed to the robust growth outcomes in 2023.

With global headwinds fading, the Indian economy should be able to comfortably register 6-7 per cent real GDP growth, it added.

Moody’s said that robust goods and services tax collections, rising auto sales, consumer optimism and double-digit credit growth suggest urban consumption demand remains resilient. On the supply side, it said that expanding manufacturing and services PMIs add to evidence of solid economic momentum, reported ET Now.

India’s GDP Growth In Oct-Dec 2023 Quarter 

India’s gross domestic product (GDP) grew 8.4 percent during the October-December 2023 quarter (Q3 FY24) against the 4.3 percent growth recorded a year ago, according to the latest official data released on Thursday, February 29. The Q3 FY24 GDP growth is higher than what was expected by analysts.

For the Q3 FY24, analysts had expected a slower GDP growth of between 6 percent and 7 percent. India’s economy had grown 7.6 percent in the preceding July-September 2023 quarter.

PM Modi On India’s GDP In Q3 2023

Calling the GDP numbers the strength of Indian economy, PM Modi said that his government will continue its efforts to bring fast economic growth. “Robust 8.4% GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat!,” PM Modi wrote on X.