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The world’s largest rating agency has expressed two predictions regarding India. First, what could be the pace of India’s economy. The second estimate is related to the loan EMI for the common people, which may be a bit disappointing for the people of India. However, Moody’s is quite bullish about India’s economy. Also, Moody’s has been describing India’s economy as better for the last few years. It also sees the country’s GDP as the new engine of the global economy. Let us also tell you what has been said this time regarding the country’s economy and loan EMI?
What impact will this have on the Indian economy?
The rating agency said in its report that the Indian economy is in good shape and is expected to grow at 7.2 percent in calendar year 2024 and 6.6 percent next year. Moody’s said the Indian economy is growing with solid growth and moderate inflation. The rating agency in its Global Macro Outlook 2025-26 said the global economy has shown remarkable resilience to supply chain disruptions during the pandemic, energy and food crises following the Russia-Ukraine war, high inflation and consequent monetary policy tightening. ,
What is the current status of India’s economy?
According to the report, most G-20 economies will register stable growth and this will be supported by ease on the policy front and favorable commodity prices. The rating agency said that changes in US domestic and international policies after the elections could increase global economic challenges. Regarding India, Moody’s said gross domestic product (GDP) grew 6.7 percent year-on-year in the second quarter (April-June) of 2024 due to improvement in domestic consumption, strong investment and strong manufacturing activity. It further said that high frequency indicators, such as expansion of manufacturing and services PMIs, strong credit growth and consumer confidence, indicate stable economic momentum in the third quarter. Moody’s said the Indian economy is actually in good shape from a macroeconomic perspective with solid growth and moderate inflation. We estimate gross domestic product (GDP) to grow by 7.2 percent for 2024. After this, the economic growth rate may be 6.6 percent in 2025 and 6.5 percent in 2026.
Will interest rates decrease or…
The rating agency also said that given inflation risks, it is possible that the Reserve Bank of India may maintain a relatively tight monetary policy this year. In such a situation, there will be less scope for cutting interest rates in the near future. Moody’s said that despite a near-term uptick, retail inflation should remain within the Reserve Bank’s target range in the coming months, as higher sowing and adequate foodgrain stocks should keep food prices under control. Retail inflation hit a 14-month high of 6.21, above the Reserve Bank’s upper limit of satisfactory level, due to a sharp rise in vegetable prices.
