According to a recent Moody's report, India's economy is currently in a favorable macroeconomic situation, combining robust economic expansion with falling inflation rates. According to the credit rating agency, India's GDP is expected to increase by 7.2% in 2024, 6.6% in 2025, and then somewhat less by 6.5% in 2026.
India's real GDP increased 6.7% in the second quarter of 2024 over the same period the year before, primarily due to strong manufacturing performance, increased investment, and a recovery in consumer spending.
Strong manufacturing and services PMI numbers, robust credit expansion, and rising consumer confidence are some of the key indications that show the resilience of the country's economy and point to the possibility of continued growth into the third quarter starting in September.
The research stressed that it is expected that household spending will continue to be strong, driven by purchases made during the holiday season and rising demand in rural areas as a result of the agriculture sector's recovery. Positive corporate optimism, increased capacity utilization, and ongoing government-led infrastructure initiatives are all projected to boost private investment, a key driver of GDP growth.
Moody's noted that India's robust economic underpinnings—such as steady bank and company balance sheets, a robust external sector, and sizeable foreign exchange reserves—further enhance the nation's economic prospects.
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