Ratings agency Moody’s has revised its economic growth projections for India during the calendar year 2022 to 9.5% from 7% back in November 2021. The upgrade in India’s GDP growth prospects are underpinned by strong recovery momentum and focus on capital expenditure in the latest Union Budget, the agency said in its latest update of global macroeconmic outlook.
In the February update of Global Macro Outlook 2022-23, Moody’s retained its projection that the Indian economy will grow at 5.5% during the calendar year 2023.
“We have raised our 2022 calendar year growth forecasts for India to 9.5% from 7%, and maintained our forecast for 5.5% growth in 2023. This translates into 8.4% and 6.5% in fiscal years 2022-23 and 2023-24, respectively. The speed of the recovery from the first lockdown-led contraction in Q2 2020, and subsequently in Q2 2021 during the Delta wave was stronger than expected, and the economy is estimated to have surpassed the pre-Covid level of GDP by more than 5% in the last quarter of 2021,” Moody’s said in its forward-looking report.
Commenting on underlying factors that are expected to have an impact on the Indian economy, the agency says, “Sales tax collection, retail activity and PMIs suggest solid momentum. However, high oil prices and supply distortions remain a drag on growth.”
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