Moody’s Outlook: Today two rating agencies have released their estimates regarding India’s economy. Both the rating agencies in their outlook have expressed expectations about India’s good economic growth rate and have said that the Indian economy is in good shape. The world’s leading global rating agency Moody’s said that the Indian economy is moving forward with a good solid growth rate and mild inflation.
Moody’s Ratings gave these estimates for India’s GDP
India’s GDP is expected to grow at the rate of 7.2 percent in the current calendar year 2024 and at the rate of 6.6 percent in the next year i.e. 2025. Moody’s has estimated an economic growth rate of 7.2 percent in GDP for 2024. After this, India’s GDP may grow at the rate of 6.6 percent in 2025 and 6.5 percent in 2026. Regarding India, Moody’s said that in the April-June quarter of 2024, GDP growth was recorded at 6.7 percent on an annual basis. In the second quarter, mainly due to improvement in domestic consumption, strong investment and strong manufacturing activities, GDP growth figure of 6.7 percent has been seen.
Reserve Bank of India has limited options – Moody’s
Moody’s has also said that there are less options for the Central Bank of India i.e. Reserve Bank of India in which it will see little scope for reduction in interest rates in the near future. Given the risks of continued rise in inflation here, it seems that the Reserve Bank of India will maintain a relatively tight monetary policy this year.
Moody’s gave this estimate on the country’s inflation rate
Regarding the inflation rate, Moody’s said that despite the rising retail inflation rate in the coming months, it should remain within the range set by the Reserve Bank in the coming months. The reason behind this is that due to more sowing of Kharif crop and sufficient food stocks, the prices of food items will come down. Due to the sharp rise in vegetable prices, retail inflation has reached a 14-month high of 6.21. This is more than the upper end of the target level of the Reserve Bank, which may cause some concern, but it can also be seen returning to the level of control in future.
India’s economy will grow at a fast pace in the third quarter – Moody’s
On the basis of expansion of manufacturing and service PMI, strong loan growth and consumer confidence, it can be said that this third quarter may see stable economic growth. Moody’s has further said in this report that from the macroeconomic point of view, the Indian economy is in a good condition, with many financial indicators clearly showing an upward trend.
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