Moody’s Corporation, a leading global ratings agency, has revised India’s 2024 GDP forecast upwards from its previous estimate of 6.8% made in June to 7.1% for Calendar Year 2024 (CY24). The update reflects the resilience of the Indian economy amidst ongoing global uncertainties, indicating a stable outlook for the country’s growth trajectory.
India’s 2025 Growth Projection Remains Unchanged
- While the 2024 GDP forecast has been raised, India’s 2025 GDP growth forecast remains steady at 6.5%.
- Moody’s also projected a slight increase in 2026, forecasting 6.6% growth.
- The new Asia-Pacific outlook highlights India’s role in driving regional growth while navigating a volatile global landscape.
Key Highlights of Moody’s India Forecast:
1. Improved Inflation Outcomes for India
- India’s inflation forecast has been reduced to 4.7% for CY24, down from the earlier prediction of 5%.
- Forecasts for CY25 and CY26 remain unchanged at 4.5% and 4.1%, respectively, indicating confidence in India’s ability to manage inflation.
2. Global Context: Asia-Pacific Region Growth
- Moody’s raised its forecast for the Asia-Pacific region by 10 basis points to 4% in 2025.
- However, developing Asia’s growth will slow to 5.1% in 2024 and 4.9% in 2025, largely due to the sluggish momentum in China.
- China’s growth is expected to decelerate to 4.7% in CY24 and 4.6% in CY25, driven by weak domestic demand.
3. Impact of Exports on Asia-Pacific Growth
- Exports have been crucial for the growth of the Asia-Pacific region, but uncertainty looms.
- A combination of slow global goods demand and China’s export-driven policies has triggered protectionist measures abroad, which could further affect regional growth.
India’s 2024 GDP Forecast by Other Global Agencies
Several other global agencies have also updated their India’s 2024 GDP forecast based on current trends and regional developments:
- S&P Global Ratings has retained India’s growth forecast at 6.8% for FY25 and 6.9% for FY26 in its Asia-Pacific economic outlook.
- World Bank revised its estimate for India’s GDP growth in FY25 from 6.6% to 7%.
- IMF raised India’s FY25 GDP forecast by 20 basis points from 6.8% to 7% in July 2024.
What This Means for India’s Economic Future
The upward revision of India’s 2024 GDP forecast by Moody’s and other global institutions signals a strong outlook for the country’s economy. India’s resilience amidst global uncertainties is noteworthy, and the country’s efforts to manage inflation and exports could further enhance its economic stability.
Moody’s forecast indicates that while challenges persist, India is positioned to navigate global pressures effectively, maintaining steady growth in the coming years. The country’s ability to achieve these forecasts will be critical in determining its long-term economic trajectory.
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FAQs
What is Moody’s GDP forecast for India in 2024?
Moody’s raised India’s 2024 GDP forecast to 7.1%, reflecting a positive economic outlook for the country in the coming year.
What is India’s GDP in 2024?
India’s estimated GDP for 2024 is projected to grow at a rate of 7.1% according to Moody’s.
What is Fitch’s GDP forecast for India in 2024?
Fitch’s forecast for India’s GDP in 2024 is slightly lower than Moody’s, predicting a growth rate around 6.3%.
What is India’s GDP forecast overall?
India’s GDP growth forecasts for 2024 vary by different agencies, with Moody’s projecting 7.1% and Fitch forecasting around 6.3%.
What will real GDP growth be in 2024?
India’s real GDP growth in 2024 is expected to be around 7.1% according to Moody’s.
What is Moody’s outlook for India?
Moody’s has a positive outlook for India’s economy, projecting 7.1% growth in 2024, driven by strong domestic demand and reforms.
What is the GDP growth rate of India according to Moody’s?
Moody’s predicts a 7.1% GDP growth rate for India in 2024.
What is a GDP forecast?
A GDP forecast is an estimate of future economic growth, often provided by organizations like Moody’s, Fitch, or the World Bank, indicating how much a country’s economy is expected to grow.
What is the World Bank GDP forecast for 2030 by country?
The World Bank regularly updates long-term GDP forecasts by country, but specific numbers for 2030 will depend on global economic conditions and country-specific policies.
IMF World Economic Outlook 2024
The IMF’s World Economic Outlook provides projections for global and national economies, including India, typically predicting growth rates and potential challenges for 2024.
Economic forecast for the next 5 years
India’s economy is expected to grow steadily over the next five years, with agencies predicting growth rates between 6% to 7% annually.
How is GDP calculated?
GDP is calculated by adding up all the goods and services produced in a country within a year, typically through three methods: production, expenditure, and income.
What is the GDP of our country?
The GDP of India is projected to grow at 7.1% in 2024, reflecting the total value of goods and services produced in the country.
Who is the No. 1 GDP country?
The United States currently holds the title for the largest GDP in the world.
What is GDP and GNP?
GDP (Gross Domestic Product) measures the total value of goods and services produced within a country, while GNP (Gross National Product) includes the income earned by residents from abroad.
GDP per capita
GDP per capita is the average economic output per person, calculated by dividing a country’s GDP by its population.
GDP formula
The most common GDP formula is:
GDP = C + I + G + (X – M)
Where C = Consumption, I = Investment, G = Government spending, and (X – M) = Exports minus Imports.
GDP definition in economics
GDP represents the total value of all goods and services produced within a country’s borders in a specific period and is used to gauge a country’s economic performance.
GDP ranking
Countries are ranked based on their GDP, with the U.S., China, and Japan typically in the top positions.
GDP full form
GDP stands for Gross Domestic Product.
GDP examples
An example of GDP would be the total value of cars, technology, food, and services produced in a country within one year.