New Delhi [India], May 15 : The Indian economy is expected to grow at 6.6 per cent in the current financial year 2024-25, fuelled by strong credit demand that will support the NBFC sector's profitability, Moody's Ratings said.
The rating agency's 2024-25 GDP growth estimates are, however, lower than the projections made by the RBI. The RBI, in its latest monetary policy review meeting, projected Indian economy to grow at 7 per cent in 024-25.
The global rating agency for the next financial year 2025-26 pegged India's growth at 6.2 per cent.
Rating agency Moody's recently maintained outlook for the government of India to be stable. The stable outlook incorporates the likelihood that India's fiscal metrics will continue to gradually improve amid robust growth prospects compared with peers.
A stronger and more stable economy has emerged from the pandemic, said Moody's although it does not expect a material reduction in debt amid gradual fiscal consolidation over the next year.
It had also asserted that India benefited from infrastructure development, digitalization and the rehabilitation of the financial system.
India's GDP grew at a massive 8.4 per cent during the October-December quarter of the financial year 2023-24, and the country continued to remain the fastest-growing major economy and is poised to maintain its growth trajectory going ahead.
India's economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22, respectively.
The Indian economy is estimated to have grown 8 per cent in the 2023-24 financial year.
India is set to remain the fastest-growing among major economies in 2024, according to latest International Monetary Fund's latest World Economic Outlook. IMF, in its latest outlook, raised India's growth projections for 2024 from 6.5 per cent to 6.8 per cent.
Firm GDP growth forecasts, inflation at manageable levels, political stability at the central government level, and appreciable central bank monetary policy, have all contributed to painting a bright picture for the Indian economy in recent quarters.
Citing various macroeconomic parameters that are doing pretty well, India's G20 Sherpa and former CEO of Niti Aayog Amitabh Kant projected that the country is all set to overtake Japan as 4th largest economy in the world by 2025.
The size of India's GDP is currently ranked 5th, after the US, China, Germany, and Japan. It overtook the UK in 2022.
Just a decade ago, Indian GDP was the eleventh largest in the world. Currently, India's GDP is estimated to be around USD 3.7 trillion.
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