India's 2023 growth forecast retained at 6.7% by Moody's

13 Nov '23

1 min read

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Moody's has retained India's 2023 economic growth forecast at 6.7 per cent, saying strong domestic demand will likely sustain near-term growth.
The projection was 6.1 per cent for next year and 6.3 per cent for 2025.
Exports were weak amid an unfavourable global economic backdrop. The strong June quarter momentum carried into the September quarter as well.

Moody's Investors Service recently retained India's economic growth forecast for this year at 6.7 per cent, saying strong domestic demand will likely sustain near-term growth. The growth projection was 6.1 per cent for next year and 6.3 per cent for 2025.

Exports were weak amid an unfavourable global economic backdrop, Moody's noted in its Global Macroeconomic Outlook 2024-25.

India's real gross domestic product (GDP) rose by 7.8 per cent year on year (YoY) in the June quarter, up from 6.1 per cent in the March quarter.

High-frequency indicators show that the economy's strong June quarter momentum carried into July-September as well, Moody's said.

Urban consumption demand will likely remain resilient amid the ongoing festive season. Rural demand, which has shown nascent signs of improvement, remains vulnerable to uneven monsoons that could lower crop yields and farm income, it noted.

Expanding manufacturing purchasing managers’ index and healthy core industries' output growth add to evidence of solid economic momentum, it added.

ALCHEMPro News Desk (DS)

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