Moody's raises India's growth forecast

New Delhi, February 24

Moody’s Investors Service on Thursday raised India’s growth forecast to 9.5% for the calendar year 2022 and to 8.4% for the coming fiscal beginning April 1, even as it flagged high oil prices and supply distortions as a drag on growth.

Stating that the economic recovery from the first and second Covid wave in 2020 and 2021, respectively has been stronger than expected, Moody’s said Goods and Services Tax (GST) collection, retail activity and Purchasing Managers’ Index (PMI) suggest ‘solid momentum’.

“We have raised our forecast for India growth 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,” Moody’s said in its Global Macroeconomic Outlook 2022-23. — PTI

Economic outlook

The global ratings agency said Goods and Services Tax (GST) collection, retail activity and Purchasing Managers’ Index (PMI) suggest ‘solid momentum’