Moody’s, one of the world’s largest credit rating agencies, has raised India’s economic growth forecast. Moody’s Investors Service on Wednesday raised India’s economic growth forecast for 2023 to 5.5% from 4.8%.
Moody’s has made this estimate in view of the increase in capital expenditure in the budget and better economic conditions.
However, Moody’s reduced India’s growth forecast for 2022 to 6.8% from 7%.
Moody’s has also increased the growth forecast for several G-20 economies including the US, Canada, Europe, India, Russia, Mexico and Turkey in the February update of 2023-24 in view of the current situation in the world. This increase was done at the end of 2022 due to the strength of the economy.
The credit rating agency said, in the budget of FY 2023-24 in India, the allocation for capital expenditure (3.3% of GDP) was increased. This figure increased from 7.5 trillion in the last financial year to 10 trillion.
The rating agency said that in such a situation, the real GDP can increase by 0.7% in 2023 i.e. 5.5%. It is estimated to be 6.5% in 2024.
The rating agency has further said that the strong figures in the second half of 2022 give hope that the performance in 2023 will be good. Moody’s said that economic growth in several major emerging markets, including India, has been stronger than last year’s estimates.
Moody’s report said, ‘We estimate that the G-20 global growth rate will decline from 2.7% in 2022 to 2% in 2023. Then in 2024 it will improve to 2.4%.
At the same time, Moody’s has predicted a GDP growth of 5% in 2023 for China.
