Moody’s keeps India’s 2024 growth unchanged at 6.8%

Moddy's expects inflation to ease to 5.2 percent in the current year from 5.7 percent in 2023 and further decline to 4.8 percent in the following year.

Global rating agency, Moody’s, on Friday, kept India’s 2024 growth forecast unchanged at 6.8 percent from its March forecast.

The rating firm predicted Indian economy to grow 6.4 percent in 2025.

“Increasing domestic and overseas demand is supporting GDP growth in emerging markets (EMs), with wide variation by country,” it said.

The agency expects inflation to ease to 5.2 percent in the current year from 5.7 percent in 2023 and further decline to 4.8 percent in the following year.

Inflation declined to a 12-month low of 4.75 percent in May, according to data released by the government last month.

“In Indonesia and India, headline inflation has slowed mainly because of lower food prices, but the volatility of these prices remains an issue for the two countries,” it said.

“Headline inflation is decreasing in EM Asia and is near or below central bank targets in most countries in that region alongside generally tepid wage trends, although India and Vietnam are reporting stronger wage gains of over 5% year on year,” Moody’s further added.

The Reserve Bank of India recently revised india’s growth forecast upward to 7.2 percent from 7 percent projected earlier.