Indian Economy: Moody’s raises India’s growth forecast, according to rating agency, India’s GDP may remain 9.5 percent in the current financial year

Moody’s Growth Outlook: Due to Russia’s attack on Ukraine, where there is tension around the world. Due to this, there is a decline in the stock markets around the world including India. Crude oil has crossed $100 per barrel, which is bad news for India. But in the meantime a good news has come for India from International Rating Agency Moody’s Investors Service. Moody’s has projected India’s growth rate to be 9.5% in the current financial year 2021-22. Earlier the agency had estimated it to be 7 percent.

Moody’s has said in its Global Metro Outlook 2022 23 report that the Indian economy is recovering rapidly after the Corona epidemic and the second wave. Moody’s has projected the Indian economy to grow at the rate of 8.4% for the fiscal year 2022. Moody’s estimate is 60 basis points higher than RBI’s estimate. RBI has projected the Indian economy to grow at 7.8 per cent in 2022-23.

According to Moody’s Investors Service, sales tax collection has picked up in India, retail activity is high and PMI (Purchasing Manager Indices) is improving. However, Moody’s has said in its Global Metro Outlook report that due to rising fuel prices and supply disruptions, there may also be a negative impact on the economy.