Moody’s Ratings: India’s economy is on the right track, Moody’s raised the GDP growth forecast to 9.5 percent

Moody’s Ratings: The country’s economy is recovering well from the impact of Corona and is moving on the right track. Meanwhile, rating agency Moody’s Investor Service has raised India’s GDP growth forecast for 2022 to 9.5 percent. Significantly, Moody’s had earlier projected a growth rate of 7 percent.

Moody's Ratings: India's economy is on the right track, Moody's raised the GDP growth forecast to 9.5 percent
Moody’s Ratings: India’s economy is on the right track, Moody’s raised the GDP growth forecast to 9.5 percent

Moody’s Ratings estimated 5.5 percent for 2023

According to the report released by the rating agency on the Indian economy, the GDP growth forecast for 2023 has been retained at 5.5 percent. It has been said in the report that after the beating of Corona, the Indian economy is making a rapid comeback. Moody’s estimate is 60 basis points higher than RBI’s estimate. The central bank has projected the Indian economy to grow at 7.8 percent in 2022-23.

The growth rate could be 8.4 percent in FY23

Moody’s ratings said in its report that the growth rate could be 8.4 percent in FY23 and 6.5 percent in FY24. In its Global Macro Outlook 2022-23 report, Moody’s has said that sales tax collection, retail activity, and PMI in India indicate strength. However, rising fuel prices and supply constraints can harm the economy.

Fitch Ratings expressed this estimate:

Along with Moody’s, Fitch Ratings also said on Thursday that the Indian economy is making a rapid comeback after facing the outbreak of the Corona epidemic. However, according to Fitch, the country’s medium-term debt remains uncertain. Fitch has projected India’s real GDP growth to be 10.3 percent in the next fiscal and 8.4 percent in 2021-22. Fitch said in its report that physical consolidation might be slower than expected based on our earlier budget presented on February 1, 2022.

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