Standout performer: What global rating agencies said about India in 2023

JP Morgan boldly predicted India’s elevation to the third-largest economy by 2027, reaching an impressive $7 trillion by 2030

India drew attention and accolades as it emerged as a trend beater in 2023, the first post-pandemic year, with strong GDP growth, better-than-expected earnings season and a market bull run despite global headwinds.

The resounding endorsements underscore India’s remarkable economic ascent, positioning the nation as a pivotal player on the world stage. According to experts, the country emerged as a standout performer and is poised to become the third-largest economy in this decade. The agencies are upbeat about the India growth story while the rest of the world experiences a slowdown.

We take a look at what some of the top agencies’ observations on India’s growth trajectory in 2023:

●  IMF's optimisim

The International Monetary Fund (IMF) forecasts a robust growth trajectory for India, projecting a 6.3 percent growth rate for both 2023 and 2024. Notably, an upward revision of 0.2 percentage points for 2023 reflects the nation's stronger-than-anticipated consumption during April-June. The IMF also predicts that India’s transformation into a $5 trillion economy, securing the third-largest GDP globally by 2027-28, solidifying its economic significance

● Moody’s confidence

Moody’s anticipates India’s real GDP to expand by approximately 6.7 percent in 2023, followed by 6.1 percent in 2024 and 6.3 percent in 2025, reaffirming confidence in the nation’s sustained economic growth. According to the rating agency, “India along with other emerging market economies like Brazil, Mexico and Indonesia are well-positioned to capture a greater share of global trade flows due to the push from the West to diversify supply chains away from China amid geopolitical tensions.”

● RBI’s positive adjustments

The Reserve Bank of India (RBI) has adjusted its forecast for FY24 GDP growth, upgrading it from 6.5 percent to a more optimistic 7 percent following a surprising performance in Q2.

● S&P Global Ratings’ bold prediction

S&P Global Ratings sees India ascending to the position of the world’s third-largest economy by 2030, reflecting the country’s growing economic prowess. According to S&P, India will be the fastest-growing major economy in the next three years

● JP Morgan's on India’s story

JP Morgan boldly predicted India’s elevation to the third-largest economy by 2027, reaching an impressive $7 trillion by 2030, underlining the nation’s unparalleled economic potential.

● Morgan Stanley’s endorsement

Morgan Stanley Research expresses confidence in India’s economic growth, expecting it to hover around 6.5 percent for FY2024 and FY2025. The endorsement is grounded in India’s strong domestic fundamentals.

Not only the global ratings agencies but also renowned voices like RBI DG Patra echoed the sentiment and forecast India’s ascent to a $5 trillion economy while securing the third-largest global GDP by 2027.

A similar sentiment is shared by Ray Dalio, Founder of Bridgewater Associates, the world’s largest hedge fund, who identifies India as having the highest potential growth rate among the top 20 countries globally.