Business News Desk, Moody’s Investors Service on Wednesday raised India’s economic growth forecast for 2023 to 5.5 per cent from 4.8 per cent earlier. This increase has been done in view of the sharp increase in capital expenditure in the budget and better economic condition. However, Moody’s has reduced India’s growth forecast for 2022 from 7 per cent to 6.8 per cent.
Enhanced economic growth forecast
In the February update of the Global Broad Outlook 2023-24, Moody’s raised growth forecasts for several G20 economies, including the US, Canada, Europe, India, Russia, Mexico and Turkey. This increase is due to a strong end to the year 2022.
Moody’s informed
Moody’s said, ‘In the case of India, there was a sharp increase in the allocation of capital expenditure in the budget for the financial year 2023-24. This figure increased to Rs 10,000 billion from Rs 7,500 billion in the previous financial year. The rating agency said that in such a situation, the real GDP growth in 2023 can be 0.70 percent more i.e. 5.5 percent. It is estimated to be 6.5 percent in 2024.
Strong performance in 2023
It further said that strong figures in the second half of 2022 give hope that the performance will continue to be strong in 2023. Moody’s said economic growth in several large emerging market countries, including India, was stronger than expected last year.