New Delhi : Indian economy is in very good condition at present. Rating agency Moody's has estimated for the year 2024 that India's growth rate could be 7.2 percent this year and 6.6 percent next year. Moody's has said that the Indian economy is growing with strong growth and moderate inflation.
The rating agency also added that considering the risk of inflation, it is possible that the Reserve Bank of India may maintain a relatively tight monetary policy this year. In such a situation, there will be little scope for reduction in interest rates in the near future. Moody's said that despite the uptick in the coming period, retail inflation should remain within the Reserve Bank's target range in the coming months, as food prices will decline due to higher sowing and adequate grain storage.
Retail inflation at highest level
Due to the sharp rise in vegetable prices, retail inflation has reached its highest level of 6.21 in 14 months, which is more than the upper level of satisfactory level of the Reserve Bank. The rating agency, in its Global Macro Outlook 2025-26, has said that the global economy has shown remarkable resilience in overcoming supply chain disruptions during the pandemic, energy and food crises following the Russia-Ukraine war, high inflation and the resulting tight monetary policy. Is.
Global Economic Challenges
According to the report, most of the G-20 economies will register stable growth rates and will be supported by softness on the policy front and favorable commodity prices. The rating agency said that post-election changes in US domestic and international policies may increase global economic challenges.
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Regarding India, Moody's said that due to improvement in local consumption, strong investment and strong manufacturing activity, the gross domestic product (GDP) increased by 6.7 percent on an annual basis in the second quarter of 2024 i.e. April-June. It further said that high frequency indicators such as expansion of manufacturing and services PMIs, strong credit growth and consumer confidence indicate stable economic momentum in the third quarter.
7.2 percent increase in GDP
Moody's has said that in fact, from a macroeconomic perspective, the Indian economy is in good shape with strong growth and moderate inflation. We have estimated a growth of 7.2 percent in gross domestic product (GDP) for 2024. After this, the economic growth rate may be 6.6 percent in 2025 and 6.5 percent in 2026.
(with agency input)
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