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India to remain fastest growing Asia-Pacific economy in 2024, predicts Moody's

In a report titled Credit Conditions Asia-Pacific H2 2024 Credit Outlook, Moody's Ratings said Indonesia, the Philippines and India led the way in terms of growth in first half of 2024 and should continue to outperform pre-Covid growth numbers.

Edited By: Anurag Roushan @Candid_Tilaiyan New Delhi Updated on: June 13, 2024 20:33 IST
India to remain fastest growing Asia-Pacific economy in 2024
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Moody's latest Ratings revealed that India is poised to maintain its position as the Asia-Pacific region's top-performing economy in 2024, continuing the robust growth driven by domestic factors seen last year. According to its report titled "Credit Conditions – Asia-Pacific H2 2024 Credit Outlook," Indonesia, the Philippines, and India have shown strong growth in the first half of the year and are expected to surpass pre-Covid growth levels. This is supported by increasing exports, strong local demand, and substantial government investments in infrastructure, it added. 

"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," the report added. Moody's said stronger portfolio inflows are likely in India and ASEAN economies, because of robust corporate credit metrics and appealing valuations.

India's economic growth forecasted at 6.8%

In its latest projection, the rating agency forecasted India's economic growth at 6.8 percent for the ongoing year, with expectations of a slight moderation to 6.5 percent in 2025. This outlook hinges on the country's strong economic expansion and continuity in post-election policies. India's real GDP expanded by 7.7 percent in 2023, up from 6.5 percent in 2022, primarily fueled by substantial government capital expenditures and vibrant manufacturing output.

India to remain fastest growing economy: World Bank 

Earlier this week, a Work Bank report stated that  India will remain the fastest-growing major economy recording a steady growth of 6.7 per cent in the next three years including the current financial year. In India, growth is estimated to have picked up to 8.2 per cent in fiscal year (FY) 2023/24 (April 2023 to March 2024) -- 1.9 percentage points higher than estimated in January, according to the World Bank's latest Global Economic Prospects report. 

It further said global growth is projected to hold steady at 2.6 per cent in 2024 before edging up to an average of 2.7 per cent in 2025-26.That is well below the 3.1 per cent average in the decade before Covid-19. In India, World Bank said inflation has remained within the Reserve Bank's target range of 2 to 6 per cent since September 2023. It further said that private consumption growth is expected to benefit from a recovery of agricultural production and declining inflation.

(With PTI inputs)

ALSO READ: India's economy grows 7.8 per cent in March quarter, annual growth rate hits 8.2 per cent



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