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Moody's projects India's GDP at 7.2% in 2024, states Indian economy is in a sweet spot.

Economy Business | Dated: 22 Nov 2024

According to the Global Rating Agency, Moody's Ratings, the Indian economy is in a "sweet spot," with a mix of solid growth and moderating growth. It has projected India's Gross Domestic Product (GDP) growth rate at 7.2% for Calendar Year 2024 (CY24).

🎯 Key Highlights:

  • - It has also estimated India's GDP growth for CY25 and CY26 at 6.6% and 6.5%, respectively.
  • - These projections were made by Moody's in its latest "Global Macro Outlook for 2025-26".
  • - The report highlighted that India's real GDP grew by 6.7% Year-on-Year (Y-o-Y) in the 2nd Quarter (Q2: July to September) of CY24, which was mainly attributed to strong household consumption, robust investment, and strong manufacturing activity.

💡 Other Important Facts:

  • (i) As per the report, India's retail inflation surged to a 14-month high of 6.21%, breaching the RBI's inflation tolerance range of 2% to 6%, amid a sharp increase in vegetable prices.
  • (ii) The report highlighted that India's real GDP grew by 6.7% Year-on-Year (Y-o-Y) in the 2nd Quarter (Q2: July to September) of CY24, which was mainly attributed to strong household consumption, robust investment, and strong manufacturing activity.
  • (iii) Also, the high-frequency indicators including expanding manufacturing and services Purchasing Managers' Indexes (PMIs), robust credit growth, and consumer optimism, indicate steady economic momentum in Q2 of CY24.

📚 Test Your Knowledge:

Recently, Moody's projected India's GDP growth for 2024 at which percentage?

Correct Answer: 7.2%

🚀 Quick Recap:

About Moody's Ratings

  • President : Michael West
  • Headquarters : New York