Moody's Investor Services has retained India's gross domestic product (GDP) growth forecast for 2023 at 6.7%.
Banking & Finance
Moody's Investor Services has projected India's economic growth at 6.7% for 2023, citing the country's remarkable resilience amid the global recession due to solid domestic demand. The Indian economy grew by 7.8% in the first quarter of the current financial year (Q1FY24). India's exports grew 6.1% in the last quarter due to higher government expenditure as well as increased private capital expenditure and strong services growth. Moody's expects India's exports to remain weak against the backdrop of an adverse global economy, however, strong domestic demand will sustain growth in the near term. The International Monetary Fund (IMF) also cut its 2023-24 growth forecast for India to 6.1% from its July estimate, citing higher-than-expected consumption during Q1. Meanwhile, India's retail inflation eased from a 15-month high in July to 5.02% in September due to softening food prices. Moody's expects the US RBI to keep interest rates on hold unless the Federal Reserve decides to cut rates, keeping inflation low.
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