Moody's Sustains Stable Outlook For India As China Forecast To Grow At 4.8% In 2024

Moody's Sustains Stable Outlook For India As China Forecast To Grow At 4.8% In 2024

In addition, recently, another American rating agency, Fitch downgraded its outlook for China to negative.

Juviraj AnchilUpdated: Friday, April 12, 2024, 10:49 AM IST
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American rating Moody's agency has maintained a stable outlook for the Indian economy. | File

American rating Moody's agency has maintained a stable outlook for the Indian economy. According to the agency, India strikes a balance between its sizable and varied economy. This also posts a possibility for considerable growth. In addition, a relatively stable external position, and a solid domestic funding foundation for government debt have aided the prospects.

China's Growth Forecast For 2024

This also comes at a time, when the Asian Development Bank (ADB), which is based out of Philippines presented a growth forecast of 4.8 per cent for the Chinese economy for the year 2024.

This is said to be lower than the previous year's rate of growth, which the saw the second largest economy rise at 5.2 per cent. It has to be noted that the Chinese economy has had a tough time since its meteoric boom during the pandemic years, between 2020 and early-2022.

In addition, recently, another American rating agency, Fitch downgraded its outlook for China to negative.

ADB also updated its forecast for India as well. The Manila-based financial institution revised its GDP growth projections for India, anticipating a growth rate of 7 per cent for the financial year 2024. This is up from the previous estimate of 6.7 per cent. Additionally, it forecasts a growth rate of 7.2 per cent for the financial year 2025.

ADB Aligns With RBI Forecast

Earlier, India's central bank, the RBI had also pegged its own forecast at 7 for FY25.

While Moody's outlook, scrutinized stability of the paradigm, ADB points at increased capital expenditure on infrastructure development by not just the central but also state governments. The ADB forecast also invokes the role of private sector and the investment from corporations to be another set of reason for this prediction.

This comes at a time, when the country is looking at its General elections, that are barely just a week away. Meanwhile, the equity markets also appear to be on less volatile terrain, as just this week, the Sensex and Nifty both reached their all-time high marks, with Sensex breaching the 75,000 mark twice in 2 days.

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