Moody’s Ratings, the New-York based global rating agency has raised its real GDP growth projections for India today, indicating for a robust 7.2 percent growth in the financial year 2024, up from a previous estimate of 6.8 percent and 6.6 percent in 2025 from 6.4 percent.

Report said that the raised projections for the country were attributed to strong broad-based growth, driven by resilient private consumption and improved business conditions.

The Indian economy grew 7.8 percent year-over-year in the first quarter of 2024, despite tight monetary policy and efforts toward fiscal consolidation, said Moody in its report. It added that both industrial and services sectors were thriving, indicated by Purchasing Managers’ Index (PMI) staying above 60 since beginning of this year.

 
The report also highlighted the anticipated strengthening of the capital expenditure (capex) cycle, bolstered by rising capacity utilization and continued government infrastructure spending.