Moody's Raises India's GDP Growth Forecast to 7.2% Vs 6.8% Earlier, Fitch Affirms Rating

New York-based Moody's Ratings on Thursday raised its forecast for India's GDP growth for 2024 to 7.2 per cent from 6.8 per cent as projected earlier on the back of stronger private consumption driving up aggregate demand in the economy.

"Household consumption is poised to grow as headline inflation eases toward the RBI's target. Indeed, signs of a revival in rural demand are already emerging on the back of improving prospects for agricultural output amid above-normal rainfall during the monsoon season," the global rating agency said.

"These forecast changes assume strong broad-based growth and we recognise potentially higher forecasts if the cyclical momentum, especially for private consumption, gains more traction," Moody's said.