Moody’s Ratings has raised its real GDP growth projections for India, forecasting a robust 7.2 percent growth for the fiscal year 2024, up from a previous estimate of 6.8 percent. The New York-based global rating agency has also raised its growth projections to 6.6 percent for 2025, up from 6.4 percent.

The report attributes these revised projections to strong, broad-based growth, driven by resilient private consumption and improved business conditions. Moody’s noted that 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. It also highlighted that both the industrial and services sectors are thriving, as evidenced by the Purchasing Managers’ Index (PMI) remaining above 60 since the beginning of the year.

Additionally, the report emphasized the expected strengthening of the capital expenditure (capex) cycle, supported by rising capacity utilization and continued government infrastructure spending.