The Indian economy is poised for robust growth with moderating inflation, according to Moody’s Ratings. In its Global Macro Outlook, Moody’s predicts a 7.2% GDP growth in 2024, supported by strong household consumption, manufacturing, and investments. Inflation, though temporarily high, is expected to stabilize.

BulletsIn

• Indian economy projected to grow 7.2% in 2024, per Moody’s forecast.
• Growth backed by rising household consumption and strong manufacturing.
• High-frequency indicators suggest steady momentum in Q3 2024.
• Inflation breached RBI’s tolerance band in October, reaching 6.2%.
• Food price spikes caused volatility but expected to ease with higher sowing.
• Festive season and rural demand revival fueling consumption growth.
• Government’s focus on infrastructure boosts private investment prospects.
• Moody’s cites strong corporate and bank balance sheets as growth enablers.
• RBI maintains cautious monetary stance with repo rate at 6.5%.
• Risks include geopolitical tensions and extreme weather impacts on inflation.