‘Indian economy is in a sweet spot’: Moody's forecasts 7.2% growth for India in 2024

Moody's has forecasted a 7.2% growth rate for the Indian economy in 2024 due to a rebound in household consumption and moderating inflation

Moody's has forecasted a 7.2% growth rate for the Indian economy in 2024 due to a rebound in household consumption and moderating inflation, according to a Bloomberg report which cited its Global Macro Outlook report for 2025-26.

The Moody's Corp. headquarters in New York, US, on Tuesday, Aug. 27, 2024. Moody's Corporation is a credit rating, research, and risk analysis firm (Jeenah Moon/Bloomberg)

The household consumption levels was expected to grow due to strong festival season demand as well as rural spending because of the ample rains.

As for inflation, the firm said it will likely moderate towards the target of the Reserve Bank of India (RBI) despite the fact that “sporadic food price pressures continue to inject volatility.”

Moody's also said the RBI “will likely retain relatively tight monetary policy settings into next year.”

The report also attributed geopolitical tensions and extreme weather events as potential inflation risks.

“From a macroeconomic perspective, the Indian economy is in a sweet spot,” the report quoted the ratings firm as having said in its latest Global Macro Outlook report for 2025-26.

For the calendar year 2025, Moody's estimates a growth rate of 6.6% for India, and 6.5% for 2026.

Meanwhile, it also says the G-20 economies will grow by 2.8% in 2024, which is down from 3.0% the year before. It also said the growth will “moderate through 2026.”

Moody's also said that the US is currently outperforming other developed economies, but its growth will likely slow down while Europe’s “sluggish recovery will gradually firm” and China’s growth may decelerate despite its stimulus measures.