Moody's, the global rating agency, revised India's growth forecast for 2024 upward to 6.8%, citing stronger-than-expected economic data in 2023 and diminishing global economic challenges. India's real GDP grew by 8.4% year-over-year in the fourth quarter of 2023, leading to a full-year growth of 7.7%. The government's capital spending and robust manufacturing activity significantly contributed to this growth. With global economic headwinds subsiding, India is expected to sustain a growth rate of 6-7% in real GDP.

Moody's Global Macroeconomic Outlook for 2024 projects India to remain the fastest-growing among G-20 economies. The GDP growth forecast for 2025 stands at 6.4%. High-frequency indicators indicate strong momentum in the March quarter of 2024, supported by robust goods and services tax collections, increasing auto sales, consumer confidence, and double-digit credit growth.

The interim budget for 2024-25 targets a capital expenditure allocation of Rs 11.1 lakh crore, representing 3.4% of GDP, with a focus on infrastructure development. Policy continuity and infrastructure development are expected to persist post-election, facilitating private industrial capital spending. The Production Linked Incentive scheme aims to boost key manufacturing industries and attract investments.

The year 2024 marks elections in various G-20 nations, including India, Indonesia, Mexico, South Africa, the UK, and the US. Moody's highlights the potential implications of these elections on domestic and foreign policies, lasting for the next four to five years. Businesses are adjusting supply chains and capital sources in response to evolving geopolitical dynamics.

Geopolitical realities will shape international trade flows, capital movements, migration trends, and international organizations in the foreseeable future. Domestically, industrial and trade policies are intertwined with foreign policy objectives across several nations.

Moody's, the global rating agency, revised India's growth forecast for 2024 upward to 6.8%, citing stronger-than-expected economic data in 2023 and diminishing global economic challenges. India's real GDP grew by 8.4% year-over-year in the fourth quarter of 2023, leading to a full-year growth of 7.7%. The government's capital spending and robust manufacturing activity significantly contributed to this growth. With global economic headwinds subsiding, India is expected to sustain a growth rate of 6-7% in real GDP.

Moody's Global Macroeconomic Outlook for 2024 projects India to remain the fastest-growing among G-20 economies. The GDP growth forecast for 2025 stands at 6.4%. High-frequency indicators indicate strong momentum in the March quarter of 2024, supported by robust goods and services tax collections, increasing auto sales, consumer confidence, and double-digit credit growth.

The interim budget for 2024-25 targets a capital expenditure allocation of Rs 11.1 lakh crore, representing 3.4% of GDP, with a focus on infrastructure development. Policy continuity and infrastructure development are expected to persist post-election, facilitating private industrial capital spending. The Production Linked Incentive scheme aims to boost key manufacturing industries and attract investments.

The year 2024 marks elections in various G-20 nations, including India, Indonesia, Mexico, South Africa, the UK, and the US. Moody's highlights the potential implications of these elections on domestic and foreign policies, lasting for the next four to five years. Businesses are adjusting supply chains and capital sources in response to evolving geopolitical dynamics.

Geopolitical realities will shape international trade flows, capital movements, migration trends, and international organizations in the foreseeable future. Domestically, industrial and trade policies are intertwined with foreign policy objectives across several nations.