Moody’s raises India 2022 growth forecast to 9.5%

Global rating agency Moody’s on Thursday revised up its real growth forecast for India to 9.5% for the calendar year 2022 from 7% predicted earlier but it flagged elevated oil prices and supply distortions as a potential drag on growth. It retained its 2023 growth forecast for India at 5.5%.

Brent crude oil prices crossed $105 a barrel in intraday trade on Thursday, the highest since 2014, in response to Russia’s attack on Ukraine.

Moody’s also raised its growth projections to 8.4% for the next financial year starting April 1 (from 7.9% reported earlier) and to 6.5% for FY24.