(Bloomberg) -- Moody’s Ratings forecast a 7.2% growth for the Indian economy in 2024, as household consumption slowly rebounds and inflation moderates.
“From a macroeconomic perspective, the Indian economy is in a sweet spot,” the ratings firm said in its latest Global Macro Outlook report for 2025-26. It estimates a growth rate of 6.6% for the calendar year 2025 and 6.5% in 2026.
Household consumption is expected to grow on the back of strong festival season demand and rural spending fueled by ample monsoon, it said. While “sporadic food price pressures continue to inject volatility,” inflation will likely moderate toward the India central bank’s target as food prices ease.
The Reserve Bank of India “will likely retain relatively tight monetary policy settings into next year,” Moody’s Ratings said in the report, which mapped geopolitical tensions and extreme weather events as potential inflation risks.
The G-20 economies will grow by 2.8% in 2024, down from 3.0% the preceding year and “moderate through 2026,” it said.
The US is outperforming other developed economies but the growth will likely slow down. Europe’s “sluggish recovery will gradually firm” while China’s growth is expected to decelerate despite the stimulus measures, according to Moody’s.
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