Indian Economy News

Moody's Analytics forecasts India's economy to grow by 6.1% in 2024

Moody's Analytics has projected a 6.1% expansion for India's economy in 2024, a slight decrease from the 7.7% growth recorded in the previous year. The report notes that economies in South and Southeast Asia are poised for strong output gains this year, albeit influenced by a delayed rebound from the pandemic. Specifically, India's GDP growth is expected to moderate to 6.1% after a robust performance of 7.7% in the preceding year. However, the report underscores that India's output remains below pre-pandemic levels by approximately 4% due to the lingering effects of COVID-19, supply disruptions, and international conflicts.

Moody's Analytics emphasizes that the Asia-Pacific (APAC) region is faring relatively well compared to global counterparts. The report forecasts a 3.8% growth for the APAC economy in 2024, surpassing the global economy's expected growth of 2.5%. However, both India and Southeast Asia are still in the early stages of recovery, grappling with significant output losses compared to pre-pandemic trajectories.

Regarding inflation, Moody's Analytics points out uncertainties for China and India, with the latter experiencing consumer price inflation rates around 5%, nearing the upper end of the Reserve Bank of India's target range. Meanwhile, the Reserve Bank of India (RBI) maintains its projection of retail inflation for the fiscal year 2024-25 at 4.5%, citing ongoing uncertainties in food prices. Geopolitical tensions continue to pose risks to commodity prices and supply chains, adding further complexity to inflation outlooks. The RBI forecasts inflation rates of 4.9% for the June quarter and 3.8% for the September quarter, with projections of 4.6% and 4.7% for the December and March quarters, respectively.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.