Moody’s has revised its 2023 growth projections. Image for representational purpose only.
| Photo Credit: Reuters
Global rating major Moody’s Investors Service has scaled down its GDP growth forecast for India’s economy to 6.8% for 2022-23, from an earlier projection of 7%. At the same time, it has raised the growth projection for 2023-24 to 5.5% from the 4.8% rate it had reckoned in November 2022.
India is among several G20 economies, including the U.S., China, Russia and the Euro area, whose 2023 growth projections were raised by Moody’s in an update to its global macroeconomic outlook on late February 28.
The firm attributed these revisions to strong data from the second half of 2022 that “created large carry-over effects for 2023”.
“In the case of India, the upward revisions additionally incorporate the sharp increase in capital expenditure budget allocation to ₹10 trillion (3.3% of GDP) for the fiscal year 2023-24, up from ₹7.5 trillion for the fiscal year ending in March 2023,” Moody’s explained.
In January, the International Monetary Fund (IMF) in its World Economic Outlook report said it is expecting some slowdown in the Indian economy next fiscal year and projected the growth to 6.1% from 6.8% during the current fiscal ending March 31.