Moody's Upgrades India's 2024 GDP Growth Forecast to 6.8%

Positive Revision Reflects Economic Strength

Rating agency Moody's recently revised its forecast for India's GDP growth in 2024, citing robust manufacturing activity and infrastructure spending as key drivers. This upward revision indicates both global and domestic optimism surrounding India's economy.

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Strong Economic Performance in 2023

Moody's decision to upgrade India's GDP growth forecast comes on the heels of stronger-than-expected economic performance in 2023. Notably, India's economy expanded by 8.4% in the December quarter, surpassing earlier projections.

Forecasted Growth Rate and Outlook

Moody's now anticipates India's GDP growth to reach 6.8% in 2024, up from the previous estimate of 6.1%. The rating agency asserts that India is poised to maintain its position as the fastest-growing economy among G-20 nations over the forecast period.

Supportive Factors Driving Growth

Factors contributing to India's economic growth include robust capital spending by the government, strong manufacturing activity, and ongoing infrastructure development initiatives. Moody's expects these trends to persist, facilitating a growth rate of 6.0%-7.0% in real GDP over the coming years.

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Private Investment and Consumer Demand

While private industrial capital spending has been sluggish, Moody's predicts a revival, driven by supply chain diversification benefits and government incentives. Moreover, resilient urban consumption demand, indicated by strong GST collections and rising auto sales, is expected to further buoy economic momentum.

Positive Indicators and Economic Performance

High-frequency indicators such as the HSBC Flash India Composite PMI point to sustained economic momentum. Both the manufacturing and services sectors have shown accelerated growth, reinforcing India's status as one of the fastest-growing major economies.

Monetary Policy Outlook

Despite inflation easing slightly and growth remaining robust, the Reserve Bank of India (RBI) has maintained a steady repo rate. Moody's suggests that given the solid growth dynamics and inflationary pressures, a policy easing is unlikely in the near term.


Moody's upgrade of India's GDP growth forecast reflects confidence in the country's economic resilience and potential for sustained expansion. With supportive government policies and improving economic indicators, India remains well-positioned for continued growth in the coming years.

Also Read: India PMI Feb 2024: Manufacturing Sector Demonstrates Resilience Amidst Key Developments