Delhi Delhi. The world is waiting for January 2025, when the winner of the 2024 US presidential election, Donald J. As Trump takes charge of the Oval Office, developing countries like India are also bracing for a time period that could go in either direction. Amid these developments, Moody's, one of the leading US rating agencies, has recently downgraded the growth outlook for the Indian economy. Has released his forecast for.
According to the rating agency, the Indian economy, which is the 5th largest economy (as per IMF), will see strong growth in 2024. Moody's has forecast a growth rate of 7.2 percent in Indian GDP. The agency has attributed this apparently strong growth to strong domestic consumption and soft inflation. Furthermore, the agency has also set out its forecast for 2025, projecting a growth of 6.6 per cent followed by 6.5 per cent in 2026.
This forecast and the reason behind it comes at a time when India's month-on-month inflation rate has seen a steady rise. In the last few months, there has been a surge in the inflation rates at both the wholesale (Wholesale Price Index) and retail (Consumer Price Index) levels. There was a gradual increase in the WPI from August to September and October, which increased from 1.31 percent to 1.84 percent respectively. And it increased to 2.36 percent. The situation was no different at the consumer level; The inflation rate, or CPI, increased from 5.49 percent inflation rate in September to 6.21 percent in October. This is beyond the Reserve Bank of India's target of 6 percent.
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