New Delhi: International rating agency, Moody’s Investors Service raised India’s growth projection for 2023 calendar year. The GDP growth rate is hiked to 6.7%.
‘Strong services expansion and capital expenditures propelled India’s 7.8% real GDP growth in the second (April-June) quarter from a year ago. We have accordingly raised our 2023 calendar year growth forecast for India from 5.5% to 6.7%,” Moody’s said in its Global Macro Outlook.
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Earlier the agency had affirmed its ‘Baa3’ rating on India. The agency also it has warned of domestic political issues.
The agency said that India is one of the fastest growing economies in the world. India’s potential growth has improved to 6-6.5% from sub-6% levels during the coronavirus pandemic. However, India’s potential growth rate remains lower than estimates in excess of 7% in the middle of the last decade.
The agency also said that without more material gains in revenue, the government will find it challenging to achieve its fiscal deficit target of 4.5% of GDP by 2025-26.
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