India's Economic Ascendancy Continues: Projected 6.6% Growth for 2024–25 Fiscal Year, Maintaining Position as the Fastest Growing Economy - Moody's Report"

 

India's economy is expected to grow by 6.6 percent in the current financial year, 2024-25. This growth will be supported by strong demand for credit, which will benefit the profitability of the NBFC sector, according to Moody's Ratings.

However, Moody's growth estimates for GDP in 2024-25 are lower than those made by the RBI. The RBI, in its latest monetary policy review meeting, projected that the Indian economy would grow by 7 percent in 2024-25.

Looking ahead to the next financial year, 2025-26, Moody's predicts that India's growth will be at 6.2 percent.

Moody's, the rating agency, has kept its outlook for the Indian government as stable. This means they think things will stay steady. They believe India's financial situation will get better little by little because the country is growing well compared to others.

Moody's also said that India's economy is stronger and steadier now after the pandemic. But they don't think the government's debt will decrease much, even though they expect the government to slowly improve its finances over the next year.

Moody's also mentioned that India improved because of building more infrastructure, using more digital technology, and fixing problems in the financial system.

During the months from October to December in the financial year 2023-24, India's GDP (which shows how much the country produces) increased by a huge 8.4 percent. This means India is still the fastest-growing big economy, and it seems like it will keep growing quickly in the future.

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Related Link: 

https://www.business-standard.com/economy/news/india-s-gdp-to-expand-at-6-6-in-fy25-will-fuel-nbfcs-growth-moody-s-124051401330_1.html

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India's economy has been doing well lately because experts predict strong growth, inflation is under control, the central government is stable, and the central bank's policies are effective. All these factors together make the future look promising for India.

India's G20 representative and former CEO of Niti Aayog, Amitabh Kant, shared that India is expected to become the world's fourth-largest economy by 2025, surpassing Japan. Currently, India's GDP ranks fifth, after the US, China, Germany, and Japan. It jumped ahead of the UK in 2022.

Just ten years ago, India's GDP was the eleventh largest globally. Now, it's estimated to be around USD 3.7 trillion.

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