Last weekend Moody’s Ratings forecast a GDP growth rate of 7.2% for India in 2024. It was in line with what most economists are predicting. A robust growth rate and moderating inflation could provide the perfect combination as a trigger for the growth potential of the Indian economy, it maintained. The multinational rating agency has predicted that the Indian economy would grow at 6.6% in 2025 and a marginally lower 6.5% in 2026.
Among the tailwinds that would propel the Indian economy – now the fifth largest in the world – are a robust domestic demand scene, strong corporate financial health, robust performance by the crucial banking sector, strong external position solid forex reserves etc.
World Economic Outlook data corroborate
The view of Moody’s Ratings has been corroborated by World Economic Outlook data. It too said that India will take the lead in the G20 with a 7% growth rate of GDP this year. The growth rate will not only be the highest in the world but also will leave second placed Indonesia far behind at 5%. Look at the real GDP growth projections for 2024:
India: 7%
Indonesia: 5%
China: 4.8%
Russia: 3/6%
Brazil: 3%
Africa: 3%
Turkiye: 3%
US: 2.8%
Korea: 2.5%
Mexico: 1.5%
Saudi Arabia: 1.5%
Canada: 1.3%
Australia: 1.2%
France: 1.1%
European Union: 1.1%
UK: 1.1%
South Africa: 1.1%
Italy: 0.7%
Japan: 0.3%
Germany: 0%
Argentina: (-)3.5%
Bullish about household consumption
In the Global Macro Outlook report for 2025-26, Moody’s Rating pinned hopes on India’s domestic demand. The household consumption in the country will continue to increase. While urban consumption will rise, the rural demand will also show an uptick, with the festive season stoking it significantly. Like earlier years, the huge infrastructure expenditure of the government on infrastructure investment could also drive the growth impetus.
Incidentally, the real GDP of India rose by 6.7 percent in Q2 (April-June). It was pushed by robust consumption from the household sector, investment and bullish manufacturing activity. This July-September quarter is also supposed to exhibit the same performance in various domains.
As widely predicted by economists, the World Economic Outlook data also states that the Indian economy will be the fastest growing among all the major economies of the world. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
