Latest Updates on Indian Economy: Moody’s Predicts India to Remain Fastest-Growing Economy in Asia-Pacific Region

Moody’s Rating Agency Predicts India to Remain Fastest-Growing Economy in Asia-Pacific Region

In a recent report titled ‘Credit Conditions: Asia-Pacific H2 2024 Credit Outlook,’ Moody’s Rating Agency has forecasted that India will continue to be the fastest-growing economy in the Asia-Pacific region. The report highlighted that India, along with Indonesia and the Philippines, led the way in terms of growth in the first half of 2024.

The rating agency emphasized that India’s strong performance is attributed to rising exports, local demand, and government spending on infrastructure. Moody’s stated, “India will remain the region’s fastest-growing economy, sustaining last year’s domestically driven momentum. We anticipate policy continuity after the general election, and a continued focus on infrastructure development and encouragement of private sector investment.”

Additionally, Moody’s added that stronger portfolio inflows are likely in India and ASEAN economies due to robust corporate credit metrics and appealing valuations. This positive outlook comes as the Reserve Bank of India upgraded its forecast for India’s GDP growth to 7.2 per cent for the financial year 2024-25.

Last month, Moody’s projected that the Indian economy will grow by 6.8 per cent in the current year, followed by 6.5 per cent in 2025. The World Bank has also revised India’s GDP growth forecast for the current financial year to 6.6 per cent, up from its earlier projection of 6.4 per cent.

With these optimistic projections and strong economic indicators, India is poised to maintain its position as a key player in the global economy and continue its growth trajectory in the coming years.