India to remain fastest growing economy in Asia-Pacific region: Moody's

india to remain fastest growing economy in asia-pacific region: moody's

India Economy Latest Update: Moody’s Rating has predicted that India will remain the fastest-growing economy in the Asia-Pacific region, sustaining the domestically driven momentum of the last year. In a report titled – ‘Credit Conditions: Asia-Pacific H2 2024 Credit Outlook,’ the rating agency highlighted that three nations -- Indonesia, the Philippines, and India led the way in terms of growth in the first half of 2024.

The report further added that the trio will continue to outperform pre-COVID growth numbers on the back of rising exports, local demand, and government spending on infrastructure. “India will remain the region's fastest-growing economy, sustaining last year's domestically driven momentum. We anticipate policy continuity after the general election, and a continued focus on infrastructure development and encouragement of private sector investment," Moody’s said, reports PTI.

Indian Economic Growth: Stronger Portfolio Inflows Likely

The rating agency added that stronger portfolio inflows are likely in India and ASEAN economies, due to robust corporate credit metrics and appealing valuations.

Economy News: Indian Economy to Grow 6.8% in 2024

Last month, Moody’s projected that the Indian economy will grow 6.8 per cent in the current year, followed by 6.5 per cent in 2025. This is due to the strong, economic expansion along with post-election policy continuity, the rating agency stated, reports PTI.

Indian Economic Growth: RBIs Projection

Recently, the Reserve Bank of India upgraded its forecast for India’s GDP growth to 7.2 per cent for the financial year 2024-25. "...real GDP growth for 2024-25 is projected at 7.2 per cent with Q1 at 7.3 per cent; Q2 at 7.2 per cent; Q3 at 7.3 per cent; and Q4 at 7.2 per cent," Das said, while announcing the bimonthly policy review meet. In the previous fiscal, India’s real GDP growth placed at 8.2 per cent.

World Bank Prediction on the Indian Economy

The World Bank has revised India's GDP growth forecast for the current financial year 2024-25 by 20 basis points to 6.6 per cent from its earlier projection of 6.4 per cent made in January.